Republic of the Philippines
HOUSE OF REPRESENTATIVES

‘Quezon City

FIFTEENTH (15"" CONGRESS
Second Regular Session

COMMITTEE REPORT NO. tag

Submitted by the COMMITTEE ON .TRADE AND INDUSTRY and the
COMMITTEE ON ENERGY on 12 ANS 2044

Re House Baie. 5052

Recommending its approval in substitution of House Bill Nos. 1418 and 3976.

Sponsors. Representatives Garcia A.R., Apacible, Yap S.,, and Ty

Mr. Speaker:

The COMMITTEE ON TRADE AND INDUSTRY and the COMMITTEE ON
ENERGY to which were referred House Bill No, 1418, introduced by
Representatives Yap S, and Teodoro, entitted:

AN ACT
YO ESFABLISH THE REGULATORY FRAMEWORK FOR THE
SAFE OPERATIONS OF THE LIQUEFIED PETROLEUM GAS
(LPG) INDUSTRY, PROVIDE ADDITIONAL POWERS TO THE
DEPARTMENT OF ENERGY, DEFINE AND PENALIZE
CERTAIN ACTS, AND FOR OTHER PURPOSES:

and House Bill No. 3976 , introduced by Representatives Ty, Leonen-Pizarro, Tuga,
Cabaluna, Garin S. Rivera, Alcover, Batocabe, Co, Garbin, Ting, Velasco, Payuyo,
Sambar, Marcoleta, Magsaysay E., Mendoza R., Cua, Castelo, Magsaysay M..
Calimbas-Villarosa and Sarmiento C. entitled:

AN ACT.
ESTABLISHING THE REGULATORY FRAMEWORK FOR
CONDUCT OF BUSINESS AND THE SAFE OPERATIONS OF
THE LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY, DEFINE
AND PENALIZE CERTAIN ACTS

hay the same and recommends that the attached Hi Bi
SOR ies rm vat at fouse Bill No.


AN ACT
ESTABLISHING THE REGULATORY FRAMEWORK FOR THE
SAFE OPERATIONS OF THE LIQUEFIED PETROLEUM GAS
(LPG) INDUSTRY, PROVIDE ADDITIONAL POWERS TO THE
DEPARTMENT OF ENERGY, DEFINE AND PENALIZE
CERTAIN ACTS, AND FOR OTHER PURPOSES

be approved in substitution of House Bill Nos. 1418 and 3976 with Representatives
Yap S., Teodoro, Ty, Leonen-Pizarro, Tugna, Cabaluna, Garin 8., Rivera, Aleover,
Batocabe, Co, Garbin, Ting, Velasco, Payuyo, Sambar, Marcoleta, Magsaysay E.,
Mendoza R., Cua, Castelo, Magsaysay M., Calimbas-Villarosa, Sarmiento C., Garcia
AR, Apacible, Duavit, Biron, Defensor, Alvarez A., Trefius, Casiiio, Villarica,
Mandanas, Fernandez, Garay, Teodoro, Del Rosario A.R., Sacdalan, Osmeila, Joson,
Rodriguez 1., Lacson-Noel, Yu, Ferrer J,, Sahidulla, Lagdameo A., Bonoan-David,
Mellana, Sakaluran, Quisumbing, Unabia, Colmenares, Haresco, Villar, Pancho,
Enverga, Cojuangeo C., Cajayon, Rodriguez R., Romualdez, Arroyo D., Gonzales A.,
Panotes, Ragasina, Abad, Cojuangco K.. Puno, Andaya, Apostol, Belmonte V.,
Benaldo, Amatong, Limkaichong, Abaya, Golez, Garcia-Albano, Gomez, Ungab,
Miraflores, Valencia, Lopez. C.V., Espina, Salvacion, Del Rosario A.G., Loyola, De
Venecia, Rivera, Jaafar, Benitez, Dy, Anto Barzaga, Dayanghirang,
Salimbangon, Madrona, Enverga, Pacquiao, Bichara, Kho, Jalosjos C., Lapus, Ping-
Ay, Lopez, C. J., Tieng, Ferriol, Violago, Ejercito, Villafuerte, Bagatsing, Evardone,
Macapagal-Arroygf'ibano, Dimaporo, Mercado-Revills, Celeste, Pangandaman and
Padilla as authors thereof,

Respectfully Submitted:

MENEDTYA R. ABAD

Chairpersén
Commit Energy

‘THE HONORABLE SPEAKER
MOUSE OF REPRESENTATIVES
QUEZON CITY


wren

Republic of the Phitippines
HOUSE OF REPRESENTATIVES,
QUEZON CITY

FIFTEENTH CONGRESS
Second Regular Session

House BLLNo.__5052
{in substitution of House Bills No. 1418 and 3976 )

Introduced by Representatives Yap S.. Teodoro. Ty. Leonen-Pizarro, Tugna.
Cabaluna. Garin S.. Rivera. Aleover, Batocabe, Co. Garbin, Ting. Velasco. Payuyo.
Sambar. Marcolets. Magsaysay E.. Mendoza R.. Cua. Castelo. Magsaysay M..
Calimbas-Villarosa. Sarmiento C., Garcia A.R.. Apacible. Duavit. Biron. Defensor.
Alvarez A.. Trefias. Casio. Villarica. Mandanas. Fernandez. Garay. Teodoro, Del
Rosario A.R.. Sacdalan, Osmeia. Joson. Rodriguez. 1.. Laeson-Noel. Yu. Ferrer J..
Sahidulla. Lagdameo A.. Bonoan-David. Mellana. Sakaluran. Quisumbing. Unabia.
Colmenares. Haresco. Villar. Pancho. Enverga. Cojuangco E... Cajayon, Rodriguez R..
Romualdez. Arroyo D.. Gonzales A.. Panotes. Bagasina.Abad, Cojuangco K.. Puno.
Andaya, Apostol. Belmonte V.. Benaldo, Amatong. Limkaichong. Abaya. Golez,
Garcia-Albano. Gomer. Ungab. Miraflores. Valencia. Lopez. C.V... Espina. Salvacion,
Del Rosario A.G.. ‘Loyola. De Venecia. Rivera. Jaafar, Benitez. Dy. Antonino.
Borzaga. Dayanghirang. Salimbangon. Madrona. Fnverga. Pacquiao. Bichara, Kho.
Jalosjos C.. Lapus. Ping-ay. Lopez. C. J. Tieng. Femiol. Violago. Ejercito.
Villafuerte. Bagalsing, Evardone. Macapagal-Arroyo J. M.. Albano. Dimaporo,
Mercado-Revilla. Celeste, Pangandaman. and Padilla

AN ACT
ESTABLISHING THE REGULATORY FRAMEWORK FOR THE SAFE
OPERATIONS OF THE LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY,
PROVIDE ADDITIONAL POWERS TO THE DEPARTMENT OF ENERGY,
DEFINE AND PENALIZE CERTAIN ACTS, AND FOR OTHER PURPOSES

Be it enacted by the Senote and Hause of Representatives of the Philippines in
Congress assembled:

CHAPTER I
GENERAL PROVISIONS
SECTION i. Short Title. — This Act shall be known as the “LPG Indusiry
Regulation and Safety Act of 2011
SEC, 2. Declaration of Policy. It is hereby declared the policy of the State
lo proweci the interests of consumers. ensure their general welfare and to establish

standards of conduct for business and industry


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Towards this end. the State shall:

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

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

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

4) Rationalize all applicable laws and executive issuances on the LPG
industry to strengthen and enhance existing mechanisms against hazards to health and
safety and deceptive and unconseionable trade and practices within the industry.

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

SEC. 4, Definition of Terms. - For the purposes of this Act. the following
terms are defined herein below:

(a) Accreditation shall refer to the formal recognition given by the BPS
that a re-qualifier of .PG cylinders has complied with the existing Philippine National
Standards prescribing the General Requirements for the Competence of Testing and
Calibration Laboratories, the Method of Requalification of Steel Cylinders for LPG
and any other standard prescribed by the BPS;”

(b) Alteration shall refer to any act of converting. transforming or resizing
of local or imported LPG cylinder or container ftom 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,

re-labeling. or by any other means:

(ce) Ancillary Equipment shall refer to such equipment. parts and other
de

s 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:


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(d) Auto-LPG shall refer to LPG intended to fuel. propel or otherwise
provide power fo motor vebicles:

fe) Auto-LPG Dispensing Station shall refer 10 an outlet, facility or
business establishment which retails Auto-LPG directly to individual end-users or to
the motoring publie: the same may be stand-alone or located within or operated with 2
liquefied petroleum product (LPP) retail outlet. It shall be deemed @ dealer oF retail

outlet for purposes of this Act:

iti) BFP shall refer to the Bureau of Fire Protection. created under
Republic Act No. 6975. otherwise known as the “Department of the Interior and
Local Government Act of 1990.” as amended:

(@) BOC shall refer to the Bureau of Customs, created under Philippine
Administrative Act No. 355. as amended:

{h) BPS shall refer to the Bureau of Product Standards, created under
Republic Act No, 4109, otherwise known as “Philippine Standardization Taw,"

(i) Brand Owner shall refer to a person. owning the brand name, logo.
color. mark or distinction as registered with the IPO of the DTI:

G) Bulk Conswner shall refer to any person. whose regular use or
consumption of LPG is limited lo its own use and requires hulk storage of LPG ata
volume as may be determined by DOE:

(k) Bulk" Loader shall refer to any person who engages in the
transportation and carriage of LPG in large quantities in barges. rail or road tankers.
bullet trucks and similar transportation facilities:

(i) Bulk Supplier shall refer to any person. who engages in the sale or
distribution of PG in large quantities as may be determined by the DOE;

(m) — Centratized LPG Distribution System shall refer to a network of pipes
‘or similar conduit use for the conveyance of LPG from the piped LPG provider to
consumers confined within the same compound or estublishment such as. but not
limited to. shopping malls and condominiums:

(a) Certification shall refer to the written assurance given by the DT} that
the LPG cylinder has complied with the existing PNS or any other standards issued by
the BPS pursuant to Republic Act No. 4109, governing specifications and
requirements for the repair of steel cylinders for LPG:

(0) Consipner shail refer to any person who purchases LPG for one’s own

consumption:


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(p) Container shall refer o any portable pressure vessel for the storage of
LPG for automotive use;

(q) Cross Filling shall refer to the filling of PG cylinders by a person,
other than by the brand owner:

(0) Colinder or LPG Cylinder shall vefer to any portable pressure-vessel or
container for LPG. designed for the transportation and storage of LPG;

(s) Cylinder Owner shall refer 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 D tT:

() Glinder Exchange shall refer to the industry practice whereby a
consumer who possesses an empty LPG cylinder may use the same to purchase dhe
same or different brand of filled LPG cylinder:

(uw) Ojlinder Swapping shall refer to the exchange of LPG cylinders among
industry players;

i) Dealer shail refer to any person who is involved in the sale or trading,
of LPG in cylinders to consumers and/or retail outlets:

(x) Defeerive Cylinder shall refer to damaged. unsafe and dilapidated LPG
cylinder due to corrosion or pitting. dents. cuts. gouges. digs. bulges. leaks and other
similar defects that render the T.PG cylinder unsafe for distribution in accordance with
the guidelines set by the DTI. thus creating a substantial risk of injury to the public.

aw DENR shall refer to the Department of Environment and Natural
Resources, created “under Executive Order No. 192, otherwise known as the
“Reorganization Act of the Department of Environment and Natural Resources:”

(9) _DILG shall refer to the Department of Interior and Local Goverament.
created under Republic Act No. 6975. otherwise known as “Department of the Interior
and Local Government Act of 1990,"

(DOE shall refer to the Department of Energy. created under Republic
Act No, 7638, otherwise known us the “Department of Energy Act of 1992:"

(aa) DOSY shall refer to the Department of Science and Technology.
created under Executive Order No. 128;

(bb) DOTC shall refer w the Department of Transportation and

Communications created under Executive Order No. 1

(ec) DT! shall refer to the Department of Trade and Industry, reorganized
under Executive Order No. 29:



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(dd) Hauler shall refer to any person who is involved in the distribution. and

delivery of LPG cylinders from one place to another:

{ee} Importer shall refer to any person who is engaged in the importation of
LPG whether for processing, sale or own use:

(ff) IPO shall refer to the Intellectual Property Office, created under
Republic Act No. 8293, otherwise known as the “Intellectual Property Code of the
Phitippines;”

(ge) EGU or LGUs shall refer to a local government unit or local
government units. respectively:

(bh) LPG shall refer 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;

(ii) LPG Tndustry Participants shall refer to persons who are engaged in

activities or businesses related to:
i. refining. manufacturing. importing. exporting. shipping.
transporting. hauling. storing. refilling. distributing. marketing and selling of
LPG for houschold. commercial or industrial use;
ii. refining. manufacturing. importing. exporting. shipping.
transporting. hauling. storing. refilling. distributing. marketing and selling of
LPG for automotive use (auto-LPG); and‘or
iii, manufacturing. importing. transporting. distributing and selling
of LPG cylinders and ancillary equipment including, but not limited to. LPG
cylinder or centainer and ancillary equipment manufacturers and importers, re-
qualifiers. repairers, scrapping centers. LPG cylinder or container seal
manufacturers and such other similar persons or entities:
(i) Markerer shail refer to any person who is engaged in the sale of LPG.
whether in bulk or retail under its own brand name:
(kk)  Q/AB shall refer to the Oil Industry Management Bureau of the
Deparunent of Energy:
(I) Person shall refer to an entity such as an individual or group of
individuals incorporated under law with certain legal rights and responsibilities;
(mm) Petroleum products shall sefer to the products formed in the course of

refining crude petroleum through distillation. cracking. solvent refining and chemical

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treatment coming out as primary stocks from the refinery such as. but not limited to.
LPG. naphtha, gasoline. solvent, Kerusene. aviation fuels. ofls. waxes and petrolatum.
asphalts. bitumen. coke and refinery sludge. or such refinery peuoleum fractions
which have not undergone any process or Ueatment as to produce separaic
chemically defined compounds in a pure or commercially pure state and to which
various substances thay have been added to render them suitable for particular uses.
provided that the resultant product contains not less than fifly percent (50%) by
weight of such petroleum products:

(an) PNP shall refer to the Philippine National Police, created under
Republic Act No. 6975, otherwise known as the “Department of the Interior and

Local Government Act of 1991

(00) Philippine National Stondards or PNS shall refer to the standards
promulgated by the BPS of the DTI relating to product specifications, test methods.
terminologies and standardization procedures. guidelines or practices:

(pp) Piped LPG Provider shell refer to any person who is 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,

(qq) Primary Storage Facilities shall refer to the plant. depot. equipment
and other attendant facilities, such as underground caverns. refrigerated tanks and
pressurized steel tanks, used for the storage of LPG:

(ir) Qualified LPG Serviceperson shail refer to an individual who has been
trained, qualified and certified by the DOE or any deputized agency thereof. or to an
individual who has successfully completed an approved training course for LPG
servicemen in a training schoo! duly recognized and accredited by the Philippine
government:

{ss} Refiller shall cefer to (I) a service provider authorized by an LPG
cylinder owner (o refill LPG cylinders on the Salter’s behalf. or (2) any person, who
refills LPG into one’s own LPG cylinders:

(0) Refilling Plant shall refer to any installation that is used for refilling
LPG into cylinders and has J.PG bulk storage and refilling facilities thercof;

(uu) —Refiner shail refer to any person. who refines LPG through distillation.

conversion and treatment of crude oil and other naturally occurring petroleum
hydrocarbons:


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Ov) Re-qualification shall refer to the method or procedure by which an.
LPG evlinder is subjected to inspection and re-evaluation by the BPS in accordance
with the prescribed specifications and any other standard prescribed by the BPS
governing the method of requalification of steel cylinders for LPG to determine its
acceptability for continuous use and distribution and subsequent repair or serappage.
where appropriate:

(ww) Re-qualifier shall refer to any person. duly accredited by the DTT
pursuant to this Act to engage in the business of re-qualifying LPG cylinders;

txx) Repair shall refer 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;

(yy) Repairer shal} refer to any person who is duly certified by the DTT to
engage in the business of repairing LPG cylinders;

that sells LPG in cylinders

directly to a consumer in quantities as may be determined by the DOF:

(zz) Retail Outlet shall refer to any entit

(aaa) Reticulated System shall refer to a means of supplying LPG though a
pipeline network from a centralized cylinder bank or bulk installation to muitiple
customers situated in a common locality:

(bbb) Scruppage shall refer to the desiruction of defective LPG cylinders
declared by a re-qualifier of the DTI to be unfit for use:

{cce) Scrapping Center shall refer 10 any person who is engaged in the
business of disposing defective LPG cylinders;

(ddd) Sea? shal! refer to the protective cover placed on the valve of an LPG
cylinder: and

(eee) SEC shall refer to the Securities and Exchange Commission.
reorganized under Presidential Decree No. 902-A;

(fff) Tare weight shall refer 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 DT1.

CHAPTER i
TMPLEMENTING AGENCIES


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SEC. 3. Lead Agency. — The DOE shall be the primary government agency

responsible for the implementation and enforcement of this Aci unless otherwise:

expressly stated in this Act that a particular function shall be the responsibility of
another government agency. The DOF. shall regulate. supervise and monitor the LPG
induswy. persons and entities engaged in any activity or business therein to ensure
compliance with national product quality. environmental and worker safety, and
consumer welfare standards.

SEC. 6. Additional Powers and Functions of the DOE. — To effectively
implement the provisions of this Act and in addition to its powers and functions under
existing laws. the DOE shall have the following powers and functions:

a) Administer and supervise the enforcement and implementation of this
‘Act. including the promulgation of the implementing Rules and Regulations (IRR)
thereof. and issuance of other regulations. orders or circulars necessary to implement
this Act:

1b) Issue rules and regulations to implement safety and quality standards
as well as promote fair trade practices in the LPG industey;

cc) Formulate and implement policies. programs and regulations for the
LPG industry. including the importation, exportation. stockpiling. storage. shipping.

transportation. refining. proces

jing. marketing and distribution of LPG. whether
distributed in cylinders. through centralized LPG distribution systems. or other means.
to ensure that product quality. environmental and worker safety. and consumer
welfare standards are met;

d) Implement safety standards for refilling plants. depots, storage areas,
transportation facilities and other facilities or business premises of the owners thereof
and exercise visitorial powers in order to inspect and evaluate whether such refilling
plants. depots. storage areas. transportation facilities and other facilities or business
premises comply with safety standards. During such inspection, the DOE may
scrutinize the records of the concerned LPG industry participants and confiscate
filling heads and other equipment. facility and conveyance that arc found being used
in iNegal operations:

©) Inspeet LPG cylinders in circulation, whether filled or unfilled. or
after any sale by refiners, importers. marketers. brand owners or refillers. or such 1.PG

cylinders that are for distribution to dealers and retaii outlets to determine


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conformity to established quality and safety standards for LPG cylinders developed
and established by the BPS;

ivy Confiscate substandard LPG and LPG cylinders in circulation that do
not conform to established quality and safety standards for LPG cylinders developed
and established by the BPS;

2) Investigate, motu proprio or upon report of any person, possible
infractions of this Act by concerned LPG industry participants, initiate the necessary
actions warranted under the circumstances and file the necessary complaints with the
proper court or government agency and enforce administrative sanctions as provided
under this Act;

h) Implement the LPG Cylinder Exchange. Swapping and Rehabilitation
Program:

i) Direct LPG brand owners. refillers. dealers and retail outlets to
periodically submit cylinders for requalification and to secure proper proof of
compliance therewith in accordance with the requirements of the DTT:

j} Issue and grant License to Operate to concerned J.PG industry
participants in accordance with Chapter Il of this Act. and suspend or revoke the
same after due notice and hearing for violating any provision of this Act;

k) Issue closure or cease and desist orders. as the case may be. lo any
person found in violation of this Act:

1) Impose and collect administrative fines for any violation of the
provisions of this Act. as well as fees of similar charges for its services. including the
processing of applications for Licenses to Operate:

m) Create and maintain a central database of concemed LPG industry
participants. and an inventory of existing and projected LPG supply levels in the
country Which shall be updated monthly on its own initiative or through reports of
said participants:

n) 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 J.PG for purposes of prosecuting or filing the
appropriate administrative or criminal complaints against responsible persons:

9) Establish and develop research and training programs to develop new

uses for LPG. promote improved and innovative methods and technologies for safe


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and efficient production. storage. handling or use of LPG. and 10 foster public
awareness thereof:

p) Consult and coordinate, on 2 regular basis, with LPG industry
participants. associations and consumers concemed in furtherance of the objectives of
this Act: ,

@) Coordinate with other government agencies. bodies and
instrumentalities and deputize other agencies to ensure the effective implementation
of this Act;

1) _ Investigate. prosecute. and impose penalties for dumping activities or
unauthorized filling of bulk tanks installed in industrial LPG consumers by bulk
suppliers other than the owner of the tanks: and

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

SEC. 7. Powers and Functions of the DTI. - To help effectively implement
the provisions of this Act, the DTI shall have the following exclusive powers and
funetions:

(a) Develop. formulate. promulgate, review and revise the PNS for (PG.
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 re-fillers and certify 10

their conformity to the PNS and their fitness for public and sale disteibution;
(c) Inspect and evaluate ancillary equipment, whether manufactured
locally or imported and certify to their conformity to PNS and their fitness for public
sate and distribution;
(8) Grant. accreditation and certification of conformity to PNS to re-
qualifiers, repairers. scrapping centers, LPG cylinder and seal manufacturers and
other independent. competent, private persons and entities that provide products and

services to ensure compliance by LPG industry participants with the PNS for LPG

fo

inders and ancillary equipment. in accordance with Chapter fli of this Act and to
revoke the same. if warranted, and

(e) Extend al! necessary assistance to the DOE in the implementation of
measures in furtherance of the objectives of this Act.

SEC. 8. Powers and Functions of the DILG. - To help effectively implement
the provisions o|

5 Act. the DILG shall have the following powers and functions:

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(a) Coordinate with LGUs and the PNP for the orderly and effective
implementation of this Act and of the orders. rules and regulations and issuances
pursuant thereto. including recommendations for the suspension or revocation of
business permits or Ticenses of LPG industry participants found to be in violation of
this Act:

(b) Coordinate with the DOE and the DTI in the dissemination of
information particularly to the LGUs and the PNP relevant to the implementation of
this Act; and

(c) Extend all necessary assistance 10 the DOE with respect to the
enforcement of measures to alain the objectives of this Act.

SEC. 9, Powers and Functions of LGUs. —1.GUs pursuant to their powers
provided by law especially under Republic Act No. 7160, otherwise known as the
“Local Government Code of 1991,” of. upon recommendation of the DOE and upon
due notice and hearing, shall have the power to suspend or revoke the business permit
or license of any LPG industry participant within the respective sreas of jurisdiction
for violation of the provisions of this Act: Provided. That upon the issuance by the
DOE of a notice of revocation of the License to Operate of an LPG industry
participant in accordance with Chapter Ml of this Act, the LGU shall immediately
revoke the business permit or license of said LPG industry participant.

In case of conflict between the decision of the DOE and the LGU involving
matters such as, but not limited to, violations covered by this Act. the decision of the
court shall prevail.

SEC. 10. Technical Working Group. - The DOE shall be authorized to
convene a Technical Working Group (TWG) to assist the DOF in the thorough review
and evaluation of the rules and regulations. policies. safety standards and PNS
affecting the 1.PG industry. The TWG shall be composed of not less than ten (10) nor
more than fifteen (15) representatives of the pertinent implementing government
agencies and the private sector particularly LPG industry participants and consumer
groups. Private sector representation in the TWG shall. upon consultation with the
LPG industry participants. be determined and appointed by the Secretary of Energy:
Provided. That said representatives shall be equitably distributed among [PG industry
participants,

CHAPTER HL
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LICENSES, PERMITS AND OTHER BUSINESS REQUIREMENTS

SEC. 11. License to Operate. —

(a) Requirement Prior to Engaging in Business. - Any person intending to
engage in any activity or business involving LPG shall secure its License to Operate
from the DOE prior to commencement of construction and commercial operations.
The License to Operate shall be valid for three (3) years or any such period as may be
determined by the DOE.

For purposes of this Act, the License to Operate shail certify that such person
has complied with all the documentary requirements. and safety rules and regulations
prescribed by the DOE and other pertinent government agencies: Provided, That such
other endorsements by other government agencies applicable to the particular
classification of the concemed .PG industry participant as defined and stated in this
‘Act shall have been fully complied with: Provided further. That a brand owner shall
be responsible for the following:

i) Proper manufacture. maintenance. and re-qualification of all its
cylinders prior to the release thereof to the public in accordance witb this Act:

ii) Proper filling of cylinders:

iii) Assurance that LPG is readily available at his refilling planv’s

for refilling into his own cylinders: and

iv) Refilling of his own cylinders. unless authorized by another
brand owner.

No person intending to engage in any activity or business involving LPG
shall engage in business without first having duly secured a License to Operate from
the DOF. Any such person 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 appropriate Ticense to Operate for the said new activity or business.

‘The DOE shall prescribe specific guidelines for compliance of retail outlets.
dealers and haulers in remote areas outside Metro Manila. in which case the verified
undenaking required under this Chapter may be submitted through registered mail,
without prejudice to the conduct of a standards compliance inspection.

(b) Persony Already Engaged in LPG Business. - Subject to the provisions of
Section 41 of this Act. any person already legally engaged in any activity or business
involving IPG upon the effectivity of this Act shall obtain a License to Operate

within six (6) months from such effectivity or prior to the renewat of its local business

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ficense/Mayor’s permhit, whichever comes first. but in any case. not fess than three (3)
mmomths from said effectivity in accordance with the rules. regulations. and guidelines
to be issued by the DOF.

(c) Required Submissions for License w Operate. - A License to Operate shall
only be issued upon a satisfactory finding of the applicant's compliance with the
provisions of this Act and submission of requirements. which may include the
following. where applicable:

3) Certification of compliance of applicant's facilities with fire
safety laws and regulations from the BFP:

ii) Environmental Compliance Certificate (RCC) from the DENR;

ii) Product lability insurance certificate from an insurer duly
registered with and licensed by the insurance Commission:

iv) Permits on suitability. safety and soundness of plant and
facilities for the proposed or existing operation,

¥) Compliance with the provisions of Republic Act No. 9514.

otherwise known as the “Revised Fire Code of the Philippines of 2008".

and/or Pamphlet 58 of the Nutional Fire Protection Association (NFPA 38).

otherwise known as the "Liquefied Petroleum Gas Code"; and

vi) Such other documents or requirements which the DOE may
prescribe as necessary for the effective implementation of this Act.

(a) Renewal and Posting of License 10 Operare. - The License to Operate shall
be renewed within three (3) years or any such period as the DOE may prescribe and
shall be prominently posted or displayed in a public. accessible and conspicuous area
within the business premises of the concerned LPG industry participant.

SEC. 12. Certificate uf Non-Coverage (CNC). — Any person 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 and Centralized LPG Distibution
Systems, shall secure a CNC from the DOE, For purposes of this Act, a Garage-
Based Auto-LPG operation shail refer 10 the operation of a motor vehicle fleet with a
number of vehicle units as may be determined by the DOF 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-T.PG dispensing activity shall be deemed as a

garage-based operation.

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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 shall be submitted to the DOE withia ten (10)
days trom the execution thereof,

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

SEC. 13. Undertaking to Comply with Requirements, - Any person who
intends to engage in any activity or business involving LPG which shall render it an

LPG industry participant as defined in this Act shall be required to comply with the

provisions of this Act. its IRR, and such other issuances of the DOE. under a verified
instrument to be executed in such form as shall be required by the DOE, Due filing of
the verified undertaking shall be a condition precedent for the issuance of the License
to Operate required under this Act: Provided, That submission of such undertaking

does not exempt such person or entity from securing any other certification of quali

health, safety. security. or environmental clearance from the proper governmental
agencies or instramentalities as may be provided by other laws.

SEC. 14, Suspension or Revocation of License to Operate. ~ Pursuant to its
power to issue License to Operate. the DOE shall likewise 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 amy of the prohibited
acts under Chapter XIV of this Act. and for violation of any provision of this Act and
its IRR. except those which fall under the jurisdiction of the DTI and other concerned
government agencies.

SEC. 15. Mandatory Requirement Prior 10 LGU’s Issuance or Renewal of
Locat Government Business License or Mayor's Permit. - The License to Operate
provided under Section 11 of this Act shall be a mandatory requirement for the grant
or renewal of any local government business license or Mayor's permit to engage in
business involving LPG regardless of whether such products or activities constitute
the entire or a portion of the business for which a business license is sought by the
applicant.

Non-compliance herewith shall be ground for the cancellation of any license
or permit issued by the LGU,

SEC. 16. Action of LGUs on Suspended or Revoked License to Operate. -
Upon written notice by the DOE of suspension or revocation of the Ticense 10

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Operate of a concerned LPG industry participant. the LGU shall immediately suspend
or revoke the jocal government 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 writen notice of
revocation of License to Operate {rom the DOE.

SEC. 17. Certificate of Accreditation for Manufacturers, Re-qualifiers,
Repairers af 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 Centificate of Accreditation from the DTI prior to the commencement of
its operations and annually thereafter.

‘Any person already engaged in the business of re-qualification, repatr-
scrappage of LPG cylinder and seal manufacturing upon the effectivity of this Act
shall apply for a Certificate of Accreditation from the DTI prior to the renewal of its
business permit,

SEC. 18. Monitoring and Standards Compliance Inspection.

(a) Monitoring of Facilities and Equipment. - The DOE shall monitor the
refining. importation and distribution of LPG and conduct annual inspections of
refinery. storage. hauling, transportation, refilling. or installation facilities and
equipment to ensure that clean, cnvironmentally-safe and worker-henign technologies
are applied and to ensure conformity with quality and safety standards and other
mandatory requirements under this Act.

{b)

Operate unless it is shown. upon proper conduet of standards compliance inspection.

rndards Compliance Inspection. - The DOE shall not issue a License to

that the LPG industry participant has complied with this Act and such other rules and
regulations as may be prescribed by the DOE.
fe) Frequency of Standards Compliance Inspection. - The DOE may. mone

proprio or upon a verified statement or complaint by any person, conduct regular or

random inspections of the refinery. storage. hauling. transportation or installation

facilities and equipment of LPG industry participants as it may deem reasonable and
necessary to implement the purposes of this Act.

(d) Conduct of Standards Compliance Inspection. - The DOE shall prescribe
guidelines for the proper conduct of the standards compliance inspection, including

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put not limited to the scope of the relevant premises and records as may be subject to

inspection.

(e) Power to Deputize, - The DOE may deputize such government agencies it
deems necessary to assist its functions as provided in this section,

SEC. 19. Issuance of Receipts.

(a) Transactions in Bulk, - All transactions involving the sale or transfer of
LPG in bulk must be covered by a form bearing. in addition to other requirements
under applicable laws. the following information:

i) registered name of the seller:

ii) address of the seller:

iii) date of the transaction;

iv) quantity or volume of the product;

v) plate number of wansporting wucks or registered name of
transporting barge;

vi) serial/tracking number of brand owner

vii) total price of the transaction: and

viii) such other information as may be prescribed by the DOE with the
concurrence of affected industry players.

(b) Transactions in LPG Cvlinders. - All transactions involving the sale or
transfer of LPG from dealers to retail outlets and to direct consumers must be covered
by an official receipt or sales invoice bearing, in addition to other requirements under
applicable laws. the following information:

iD registered name of the seller,
ii) address of the seller;
iii) date of the transaction:
iv) brand of LPG;
v) serial/tracking number of brand owner
vi) net weight or weight of the LPG contained in the cylinder:
vii) unit price per LPG cylinder:
vii) total price of the transaction: and
ix) such other information as may be required by the DOE.
All other transactions involving the sale or transfer of possession or ownership

of LPG from one LPG industry participant to another must likewise be covered by an

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official receipt or other written instrument bearing the above information. as

ible.

CHAPTER IV
AUTO-LPG

SEC. 20. Retailing of Auto-LPG. ~ Any person who is operating or imending
to operate an Auto-LPG Dispensing Station shall comply with the following
requirements and such other requirements as may be provided in the IRR of this Act:

a) ‘An Auto-LPG Dispensing Station shal! conform to the existing
standards for the construction and safety operation of Auto-LPG Dispensing Stations
and other standards prescribed by the BPS:

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.

SEC. 21. Training and Qualification of Personnel of Auto-LPG Dispensing
Stations. - Auto-LPG Dispensing Station Personnel shall as @ minimum requirement.
undergo taining and qualification conducted by any government recognized or
aceredited waining institution for the proper handling and retailing of Auto-LPG.
Such proof of training shall be submitted to the DOE prior to its initial operation and
subsequent renewal of its License to Operate.

CHAPTER V
OWNERSHIP OF LPG CYLINDERS AND CONTAINERS FOR
AUTOMOTIVE USE

SEC. 22. Ownership of LPG Cylinders. - Yhe 1.PG brand owner whose
permanent mark appears on the LPG cylinder shail be presumed the owner thereof.
irrespective of the purty in custody or possession of the LPG cylinder and regardless
of whether or not such LPG cylinder is or continues to be properly marked. stamped
or identified to contain its LPG brand, or whether or not such LPG cylinder is in
compliance with or continues to comply with any other product or quality standard
prescribed under law or by the BPS pursuant to this Act. unless otherwise there is any

unequivecal proof or indication that such LPG cylinder was sold. alienated. or

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otherwise disposed of by the refiner or importer to an unrelated third party under a
written instrument.

The LPG brand owner shall. through its authorized dealer or outlet, refund the
amount indicated in the deposit slip or receipt when the consumer returns the LPG
cylinder with or without the deposit slip or receipt. If the reccipt is available, the cost
shall be that appearing on the receipt. If the receipt is unavailable. it shall be at such
price fixed by the DTI. For this purpose. the DTI is hereby mandated to issue a price
list of LPG cylinders within ninety (90) days from the effectivity of this Act and to
update the same after every three (3) years. Any authorized dealer or outlet that
refluses to refund the amount of deposit shall be dealt with administratively.

The LPG brand owner shall have the obligation to ensure that its LPG
cylinders comply with all 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 cylinder owner of the

tion to ensure the quality and safety of such LPG cylinders. Such report may
be rebutted by contrary evidence.

SEC. 23. Ownership of LPG Containers for Automotive Use. ~ Containers of
LPG for automotive use are permanently installed inside the vehicles and are
therefore inherent and integral parts of the vehicle. As such, ownership of these
containers is that of the vehicle owner.

CHAPTER VI
MONITORING AND ENFORCEMENT MECHANISMS

SEC. 24, Undertaking to Comply with Requirements. - Any person who
intends to engage in any business or activity which shall render it an LPG industry
participant as defined in this Act shall be required to comply with the provisions of
this Act

implementing rules and regulations and such other issuances of the DOE.
under a verified instrument to be executed in such form as required by the DOE. Due
filing of the verified undertaking shall be a condition precedent for the issuance of the
License to Operate requircd under this Act: Provided, That submission of such
undertaking does not exempt such person from securing any other certification of
quality, health. safety. security. or environmental clearance from the proper

governmental agencies or instrumentalities as may be provided by other laws.

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‘Any person intending to import or export LPG or LPG cylinders shall. in
addition to the requirement for a verified undertaking. furnish a report to the DOE
: Provided, That all LPG and LPG cylinder

importations shall be in accordance with the law. inchiding international agreements

prior to every importation or exportatio

to which the Philippines is a signatory,

SEC. 25. Reports and Disclosures to the DOE - The DOE shall have the
power and authority to require LPG industry participants to submit written, electronic
‘or other form of reports or disclosures. as the DOE may deem reasonable and
necessary to perlorm their functions under this Act. 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 Section 44 of this Act.

SEC. 26, Central Database of LPG Industry Participants. - The central
database of LPG industry participants shall include their corporate or business name
or trade name: list of all directors and officers: principat 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 cylinder
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:

ist of lost, stolen or missing LPG cybinders: and such other
relevant information as may be determined by the DOF. The central database shall be
created by the DOE within one (1) year from the effectivity of this Act. This central
database shall be updated on a monthly basis and shall be made available to the public
and through the internet subject to reasonable fees and charges and during office
hours.

SEC. 27. Monitoring and Standards Compliance Inspection. -

a) Monitoring of Facilities and Equipment. ~ The DOE shall monitor the
facilities and equipment of concerned LPG industry participants to cnsure that clean,
environmentally-safe and worker-benign technologies are applied and to ensure
conformity to quality. health. environmental and safety standards. fair trade
regulations and other mandatory requirements under this Act:

b) Monitoring of Operations and Activities. — The DOF and the DTI shall
require from LPG industry participants under their respective areas of jurisdiction

such information as may be necessary such as. but not limited ro, activities engaged in

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the installation of facilities and equipment used in the business; supply, demand and
inventory of LPG. LPG cylinders or containers; and periodie and special reports:
©) Standards Compliance inspection, - Tee DOE shall not issue a

cense to Operate unless it is shown, upon proper conduct of standards compliance
inspection. that the LPG industry participant has complied with the requirements of
this Act and such other rules and regulations as may be prescribed by the DOF:

€) Frequency of Standards Compliance Inspection. - The DOE may, mor
proprio or upon a verified statement or complaint by any person. conduct regular or
random inspections of the refinery. storage. hauling. transportation or installation
facilities and equipment of concemned LPG industry participants as it may deem
reasonable and necessary to implement the purposes of this Act;

©) Conduct of Standards Compliance Inspection, - The DOF. shall
prescribe guidelines for the proper conduct of the standards compliance inspection.
including but not limited to the scope of the relevant premises and records that may be
subject to inspection:

Power to. Deputize, - The DOE may deputize such goverament
agencies it deems necessary to assist it with its functions provided in this section.

CHAPTER Vl
DECLARATION OF LPG CYLINDER AS INSURJOUS, UNSAFE OR
DANGEROUS

SEC. 28. Declaration of LPG Cylinder ax injurious, Unsafe or Dangerous. -
When the DOE or DTI finds, motu proprio or upon petition of any person, that an
LPG evlinder is defective and hence. possibly injurious, unsafe or dangerous, it shall
after due notice and hearing. issue the appropriate order for its immediate
confiscation. recall, seizure. impoundment or prohibition from public sale or
distribution: Provided. ‘That, in the sound discretion of the DOE or DTL. it may
declare an LPG cylinder to be imminently injurious. unsafe or dangerous and order is

immediate recall,

ware and impoundment. 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, further. That such a declaration shal be Jimited 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,

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For eases initiated motu proprio by the DOE or DTI. it shall make a final:
determination as to whether or not an LPG cylinder is injurious. unsafe or dangerous
within thirty (30) days from termination of administrative proceedings: Provided.
That in the absence of such deterinination upon expiration of the prescriptive period,
the DOE shall thereafter release custody of the IPG cylinders to the J.PG industry
participant in custody thereof prior to the order for recall. impoundment or prohibition
from public sale or distribution.

SEC. 29. Procedure for Petition for Declaration of LPG Cylinder as
Injurious, Unsafe or Dangerous. - Any interested person may. upon payment of the
appropriate filing fee prescribed hy the DOE. petition the DOE for an order declaring
an LPG cylinder injurious. dangerous or unsafe. In case the DOE. acting on such
petition or on its own initiative and upon due notice and hearing. determines an LPG
cylinder to be injurious. dangerous or unsafe. it shal! so notify the LPG cylinder
owner of such finding and order the recall. prohibition or seizure of the LPG cylinder.

SEC. 30. Recall, Seizure, Impoundment and Prohibition of Defective LPG
Cylinders. The order for recall, seizure. impoundment or prohibition issued by the
DOE shall contain a prohibition against the refilling. sale or distribution of the
recalled or banned LPG cylinder. The LPG cylinder owner against whom the order for
recall. prohibition or seizure is issued shall be required to subject the recalled. banned
or seized LPG cylinder to repair or re-qualification processes to render the same
compliant with appropriate PNS. or. where repair or re-qualification is not possible or
practicable. to present proof of scrappage thereof.

The LPG cylinder owner against whom the order for recall. seizure or
prohibition is issued may petition for the revocation of the order. The DOE shall
revoke the order for recall. prohibition or seizure upon a finding that the subject LPG
cylinder has been repaired or otherwise made compliant with the required PNS. or has
been replaced with a like or equivalent LPG cylinder which conforms to the
appropriate PNS.

The LPG cylinder owner shall not charge a consumer who avails of the
remedy as provided above of any expenses or costs that may be incurred in the course
of repair and re-qualification

SEC. 31. Disposition of Recatted, Banned or Seized LPG Cylinders. - The
DOE shal! formulate rules for the disposition of recalled, banned or seized LPG
evlinders: Froviced. That it shall initially adopt and enforce the rules for disposition

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of recalled, banned or seized LPG cylinders established by the DTI: Provided further.
‘That it may amend the same as it deems necessary.

SEC. 32. Removal from Circulation of Unqualified or Violative LPG
Cylinders by the DOE. ~ LPG cylinders. filled or unfilled within the filling area of
refilling plants and trading area of dealers and retail outlets that obviously do not
conform to the standards and regulations enforced by the DOE and the DTT shall be
removed from circulation in the market for the protection and welfare of consumers:
Provided. That the DOE and the DTI may exercise administrative forfeiture and shall
Gispose of LPG cylinders removed from cireulation without the necessity of court
procedure: Provided. further, Tat the DOE shall, upon consultation with the LPG
industry participants and other government agencies concemed, formulate and issue
the guidelines and procedures to implement this section.

SEC. 33. Impounding of Confiscated LPG Cylinders, — LPG cylinders
confiscated by the DOE. DTI or Jaw enforcement agencies in connection with the
commission of any of the prohibited acts under Chapter XIV of this Act for the
purpose of preserving evidence during the pendency of the administrative and/or
criminal case/s. shall be impounded. Filled LPG eylinders that are found by the
OIMB to pose an imminent threat or danger of exploding shali be disposed of without
the necessity of serving prior notice to the owner's thereof: Provided. That the OIMB
shall notify the violator. owner or respondent of such fact within five (5) days after
such disposition.

The DOE shall promulgate guidelines on safety procedures for and disposition
of impounded LPG cylinders.

CHAPTER VIL
WEIGHING DEVICES

SEC, 34. Weighing Devices.

(a) Calibrated and Sculed Weighing Devices Required in Premises. - All
refiners. importers. re-fillers, haulers. dealers and retail outlets shall. at all times.
maintain in all their establishments or outlets and within the sales areas accessible to
the public. suitable weighing devices duly calibrated annually and sealed by the City
or Municipal Treasurer. the DOST. or any other government agency authorized to
officially calibrate the same. The weighing devices shall accurately measure LPG

cylinders up to one-tenth (0,1) of one kitogram.


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(b) Checking of LPG Cylinder Content by Dealers, Retail Outlets and
Haulers, ~ All dealers. retsil outlets and haulers that sell direetly to consumer shall
weigh the LPG cylinders before displaying the same in the sales arcas and also in the
presence of the customers prior to sale. to afford the latter an opportunity to verify the
correctness of the weight of the LPG cylinders and the LPG contents thereof.

CHAPTER IX
LPG CYLINDER SEALING

SEC. 38. LPG Cylinder Seating. - All LPG cylinders shall after filling. be
provided with seals which conform to the specifications of the DOF: Provided, That
the DOE shall. after consultation with the concerned brand owners. establish such
specifications: Provided. further, That the LPG cylinder owner and its authorized re-
filler shall be jointly responsible for ensuring that LPG cylinders are properly sealed
before the LPG cylinders leave the filling ot refilling plants: Provided. finally, That
LPG cylinders with tampered or broken seals shall not be sold or distributed.

LPG cylinder sea} manufacturers shall sell seals only to the registered LPG
brand owner. unless otherwise allowed by both the said registered IPG brand owner
and the DOE.

All seals shall be registered with the DOF.

CHAPTER X
LABELING REQUIREMENTS

SEC. 36. Labelling Requirements for LPG Cylinders. - LPG cylinders shall
comply with the labelling requirements as provided for under the PNS, this section
and as may be further prescribed by the BPS.

ap For LPG Cylinder Collar. — All LPG cylinders. whether imported or
manufactured locally. shall have, among others. the following information embossed
or stamped on the LPG cylinder collar

i) The manufacturer's registered trade name or brand name.
trademark and business name;

ii) For imported brand new PG cylinders, the name and address
of the importer in the Philippines:

iii) “ Product Standard (PS} or Import Commodity Clearance

Certification (ICC) marks. as applicable;

iv) Specific standard used:
vy) Date of testing or requatification,

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vi) Thickness of plate:
vii) - LPG cylinder water capacity:
viii) ‘Tare weight:
ix) Design and test pressure: and
x) Serial number.

‘The above requirements shall form an integral part of the LPG cylinder collar,
without danger of being erased or detached under ordinary handling of the LPG
cylinder.

b) For LPG Cylinder Body. — All LPG cylinders. whether manufactured
locally or imported. shall bear the following information on the shoulder of the LPG
cylinder:

i) ‘The registered brand name. trade name or trademark of the

LPG product,

ii) Tare weight; and
iii) Net weight.

The brand name. trade name or trademark of the LPG product shall be
embossed on the shoulder of the LPG cylinder and shall form an integral part of the
body of the LPG cylinder. without danger of being erased or detached under ordinary
handling of the LPG cylinder.

AIL LPG cylinders shall be painted with colour registered with the DOE which
distinguishes the brand owner of the LPG it contains.

CHAPTER XI
DELIVERY VEHICLES, DRIVERS AND ATTENDANTS

SEC. 37. Delivery Vehicles, Drivers and Attendants. - All \ucks and other
vehicles used for transporting and delivering LPG cylinders shall be open and the
same shall be registered with the DOF. in accordance with the guidelines to be
promulgated by the DOE. in consultation with the LPG industry participants and other
agencies concerned. All haulers shall display’ on their delivery tucks or vehicles a
prominent DOE signage. Failure to register the delivery vehicle shall give rise to a
presumption that the vehicle is not duly authorized to transport LPG.

Vehicles not registered and without the appropriate DOE signage shall be
seized or impounded by the DOE. Guidelines for the accreditation of drivers and
attendants for LPG-delivery vehicles shall be prescribed by the DOE upon prior

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consultation with the LPG industry participants and other government agencies
concemed.
CHAPTER XIT
LPG CYLINDER EXCHANGE, SWAPPING AND REHABILITATION

SEC. 38. LPG Cylinder Exchange, Swapping and Rehabilitation. —
Immediately upon the effectivity of this Act. the DOE shall organize all LPG refiners.
importers, bulk suppliers, refillers. dealers and retail outlets. hereinafter referred to as
tne “Program Participanis”. to form and become part of an Alliance System for the
implementation of the LPG Cylinder Exchange. Swapping and Rehabilitation
Program, hereinafler referred to as the “Program”. Under the Alliance System. the
Program Participants shall enter into exclusive Contracts of Affiliation: Provided
That. at the retail level, the DOE. after due consideration. may allow the affiliation to
be non-exclusive. Thereafter, the Program Participants shall submit to the DOE
particulars of affiliation and/or proof of comptiance in the formation of alliances. The
Program is mandatory upon all Program Participants. Deliberate refusal to participate
in the Program shall be dealt with administratively

‘The DOE shall. in consultation with the DTI. Program Participants, concemed
government agencies and other stakeholders. formulate the appropriate rules
necessary to govern the Program. including appropriate sanctions for violation
thereof: Provided. That the Program shall he governed by the following principles and
standards:

(a) The safety of the cylinder for the benefit of the consumer shall be the
priority concern. Any procedure in the implementation of the Program which may
significantly increase the retail costs of a LPG cylinder, shall be subject to
consultations with consumer groups and Program Participants by the DOE; and

(b) The Program shall take into consideration the following factors

i) The prevailing economic conditions of the LPG industry.
including but not limited to, the supply of LPG including the levels of import
and domestic production of LPG adjusted for applicable foreign exchange
rates. the demand for LPG including the levels of household and bulk use. as

‘well as the prevailing prices of LPG. among others:

ii) The number of LPG cylinders and ancillary equipment

classified into its usability and cost effectiveness:


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iii) ‘The developments in LPG safety technology and the enerey

sector in general;

iw) The statistics and other information on the level of
from LPG related incidents as well as safety compliance by cach and al
industry participants; and
¥)_, Such other factors that may affect the viability of the LPG
industry particularly on its safety and affordability.
The OIMB of the DOE shall be in-charge of the implementation of the
Program.
CHAPTER XIIT
QUALITY STANDARDS
SEC. 39. Promulgation of Quatity Standards. - In order to promote the use of
environmentally safe and worker-benign technologies and processes and reduce safety
risks and operational hazards. LPG industry participants are hereby required to
comply with the quality standards established by the DOE for the LPG industry
consistent with the PNS formulated by the BPS. The quality standards shall provide
for. but not be limited to. the following:
a)
by
cc) Butk-Loading, Unloading and Transportation of LPG:
di

e)

Primary Storage Facilities:
LPG Cylinder-Filling Plants and Facilities:

Dealers and Retail Outlets; and
Auto-LPG Stations.
‘The DOE shall, in consultation with the LPG industry participants, formulate

the specific guidelines for mandatory compliance with the established quality
standards and enforce the appropriate sanctions lor violations thereof: Provided, That
nothing in this Act shall allow licensees for refilling plants, dealers and retailers to
sel! ancillary equipment not authorized by the LPG brand owner: Provided, further.
That the DOE shall. in formulating the quality standards in this Act, when applicable.
adopt the Philippine LPG Association Safety Code and the applicable international
safety standards for the LPG industry including. but not limited to. Pamphlet 58 of the
National Fire Protection Association (NFPA 58}, otherwise known as the “Liquefied
Petroleum Gas Code.”
CHAPTER XIV
PROHIBITED ACTS, FINES AND PENALTIES


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SEC. 40. 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 Chapter I1L of this Act shall be penalized with a fine
of Five thousand pesos (P5.000.00) for an individual and Ten thousand pesos
(Php10.000.00) for @ corporation, for each day of operation without a License to
Operate: Provided. That the maximum fine to be imposed shall be Five million pesos
(P5,000.000.00) for an individual and Yen million pesos (P10.000.000.00) for a
corporation.

SEC. 41. 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 certificate of
accreditation from the DTT as provided under this Act, shall be penalized with a fine
of Three thousand pesos (P3.000.00) for an individual and Five thousand pesos
(P5,000.00) for a corporation, for each day of operation without a certificate of
accreditation: Provided. That the maximum fine to be imposed shall be Five million
pesos (P5,000,000.00) for an individual and Ten million pesos (P10.000,000.00) for a
corporation.

SEC. 42. Obstruction of Inspection. - Any LPG industry participant who
refuses. prevents or ‘obstructs the inspection bf its premises and records as provided
under Chapter Ill of this Act shall be penalized with a fine of Three Hundred
thousand pesos (Php300.000.00) for an individual and Five hundred thousand pesos
(Php500.000.00) for a corporation, for each instance of violation. or imprisonment of
at least six (6) months but not more than two (2) years, or botb ul the discretion of the
court.

SE

43. Failure to Post License to Operate.— Any 1.PG industry participant
concemed who fails or refuses to post its License to Operate as required under
Chapter {II of this Act and as required by the DOE. shall be penalized with a fine not
exceeding Five thousand pesos (Php5.000.00) for each instance of violation.

SEC. 44. Failure to Submit Reportorial Requirements. - Any LPG industry
participant concerned who fails to submit periodic reports as may be required by the
DOF. within a reasonable period and in the manner prescribed by the DOE, shall be
penalized with a fine of Ten thousand pesos (Php10.000.00)for an individual and
Twenty thousand pesos (Php20.000.00) for a parwership or corporation for cach
instance plus a surcharge not exceeding One thousand pesos (Php1.000.00) for an

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individual and Five thousand pesos (Php3.000.00) for a partnership or corporation for
each day of delay of submission.

SEC. 45. Megat Storage. - Any refiner. importer, refiller. hauler. dealer. retail
outlet or bulk consumer who stores LPG in pulk without obtaining a License to
Operate of Certificate of Non-Coverage as applicable which is required under Chapter
If of this Act shall. upon conviction. be penalized with a fine of not less than Twenty
thousand pesos (Php20.000.00) but not more than One hundred thousand pesos
(Php100.000.00). 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 the second and
subsequent violations shall be penalized with both fine and imprisonment as provided
herein,

SEC. 46, Failure to Comply with Product Standards, - Any concemed 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, upon conviction,
be penalized as follows: .

a) Non-compliance with DOE mandatory requirements on safety designs
for refilling plants. equipment. depots. centralized PG distribution systems and
similar facilities shall be penalized with a fine of not less than Fifly thousand pesos
{Php30.000.00) but not more than ‘One million pesos (Phpl.000.000,00) 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 nothing in this paragraph shall preclude the
court 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 thonsand pesos (Php5.000.00) for an individual or
Ten thousand pesos (Phpl0.000.00) for a corporation. for each non-compliant LPG
cylinder used and distributed to consumers. 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
the maximum fine to be imposed shall be Five hundred thousand pesos.
(Php300.000.00) for an individual and One million pesos (Phpl.000,000.00) for a
corporation: Provided, further, That the second and subsequent violations shall be
penalized with both fine and imprisonment as provided herein: Provided. finally. That
this section shall not apply unless the LPG cylinder is in the possession of an illegal

refiller or trader.

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SEC. 47. Adutteration, - A refiner. imponer. refiller. piped gas provider.
desler or retail outlet who mixes 1.PG with another finished or unfinished petroleum
product or stock or with any non-petroleum substance or material that will result in
product quality change of in the failure of the LPG wo meet the required product
specifications of the DOF. shall, upon convietion. be penalized with a fine of Ten
thousand pesos (P10.000.00) for an individual and Twenty thousand pesos
(Php20.000.00) for a corporation, for each LPG cylinder containing adulterated LPG.
or imprisonment of at least six (6) months but not more than wo (2) Years. oF both. at
the discretion of the court: Provided, That the second and 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 Php300,000.00) for an
individual and One milfion pesos (Php1.000.000.00) for a corporation.

SEC. 48, Underfilling. ~ When the net quantity of LPG contained in LPG
cylinders sold, transferred. delivered or filled by refillers is less than the LPG cylinder
content required by the DOE at the filling plant. the refiler shall, upon conviction, be
penulized with a fine of Five thousand pesos (Php3.000.00) for an individual and Ten
thousand pesos (Phpl0.000.00) for a corporation for each underfilled JPG cylinder or
with imprisonment of at least six (6) months but not more than two (2) years. or both.
at the discretion of the court; Provided, ‘That second and subsequent violations shall
be penalized with both fine and imprisonment: Provided, firther. 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 corporation. When the net
quantity of LPG in cylinders sold. transferred. or delivered by dealers oF retail outlets
is less than three tenths of one kilogram (0.30 Kg) or the DOF-required LPG cylinder

contest quanti

the dealers or retail outlets shall be penalized with the same fines
mentioned earlier in this paragraph.

A broken, tampered. absent or removed seal shall! give rise to the presumption
that the LPG cylinder is underfilled. Ao 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 is presumed to be for sale

SEC. 49. Hitegal Refilling. - The following shall constitute illegal refilling of
LPG cylinders under this Act:


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

b) Refilling of LPG cylinder with a brand. trademark. trade name. oF
registered business name other than that of the brand owner indicated on the LPG
cylinder tank. otherwise called "pirate filling” or "eross-filling™;

c) Refilling of LPG cylinder without the embossed markings or other
indication of the brand or trade name thereof. or bearing defaced, tampered or
illegible markings contrary to the mandatory labelling end stamping requirements
under this Act:

4) 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:

©) Filling of LPG cylinder directly from LPG tank trucks without the use
‘of approved filling machines:

f) Refilling LPG from one LPG cylinder to another without using the
prescribed equipment:

2) Backyard refilling of {LPG cylinder other than in properly designed
LPG refilling plants;

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

3) __ Refilling of LPG cylinders for houschold or commercial use by Auto-
LPG Dispensing Stations;

5) Any other refilling of LPG cylinders in violation of the mandatory
requirements or prescribed standards under this act: and

k) Unauthorized loading of bulk LPG tanks in industrial accounts,

An LPG industry participant found guilty of legal refilling under this section
shall, upon conviction, be penalized with a fine of Ten thousand pesos (Php10.000.00)
for an individual and ‘Twenty thousand pesos (Php20.000.00) for a corporation. for
each illegally-filled or refilled LPG cylinder. of imprisonment of at least six (6)
months but not more than two (2) years. or both, at the discretion of the court
Provided. That second and subsequent violations shall be penalized with both fine and

imprisonment: Provicled, firrther, That the maximum fine to be imposed shall be Five


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million pesos, (Php3.000.000.00) for an individual and Ten million pesos
(Php10.000.000.00) for a corporation.

SEC. 50, Hoarding. - Any concerned LPG industry participant who, before a
price increase or in times of tight supply. unduly accumulates LPG products beyond
his normal inventory levels and unteasunably limits or refuses 10 dispose of. sell. or
distribute LPG products to the yeneral public, even if the buyer or consumer hss the
ability 10 pay in cash for the LPG products. shail. upon conviction, be penalized with
a fine of at Jeast One hundred thousand pesos (Php100.00.60) but aot more than One
million pesos (Php1.000,000.00) and imprisonment of at least six (6) months but not
more than two (2) years.

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

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

b) unreasonably limits, refuses, or fails to sell the same to the general
public at the time of discovery of the stocks. The determination of said participant's
usttal inventory shall be reckoned from the third (3) month immediately preceding
the discovery of the stocks in case said participant has been engaged in the business
for ut least three (3) months; otherwise, it shall be reckoned from the time he started
his business.

SEC. 51. Unauthorized Trading of LPG Cylinders. - Any concerned LPG
industry participant who. without the consent of the LPG cylinder owner, stores
empty LPG cylinders in quantities 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 and/or possession thereof to 2
person or entity other than the LPG cylinder owner and without the authority of the
LPG cylinder owner shall. upon conviction. be penalized with a fine of Three
thousand pesos (Php3.000.00) for an individual and Six thousand pesos (Php6,000.00)
for each illegally-stored or sold empty LPG cylinder, or imprisonment of at least six
(6) months but not more than two (2) years. or both, at the diseretion of the court
Provided, That second and subsequent violations shall be penalized with both fine and
imprisonment. Provided. further, Vhat the maximum fine 10 be imposed shall be
Three hundred thousand pesos (Php300.000.00) for an individual and Six hundred
thousand pesos (Php 600,000.00) for a corporation.

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SEC. 52. 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 10. changing the LPG cylinder valve. repainting and re-labelling, by any
person other than the LPG cylinder owner shall, upon conviction. be penalized with a
fine of Five thousand pesos (Php3,000,00) for an individual and Ten thousand pesos
{Phpl0.000.00) for a corporation, for each wmpered or altered 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 second and subsequent violations shall be
penalized with both fine and imprisonment: Provided, further, That the maximum fine
to be imposed shall be Five million pesos (Php5.000.600.00) for an individual and
Ten million pesos (Php10.000,000.00) for 2 corporation.

SEC. 53. Ilegal Possession of LPG Cylinder Seat, - Any person found in

possession of LPG cylinder seals, including the seals already used in the LPG
cylinders without authority {rom the LPG cylinder owner or its authorized refiller
shall. upon conviction. be penalized with a fine of Five thousand pesos (Php5,000.00)
for an individual and Ten thousand pesos (Phpi0,000.00) for a corporation, for each
LPG seal found in its or his possession. or imprisonment of at Teast six (6) months but
not more than two (2) years. or both, at the discretion of the court: Provided. That
second and subsequent violations shall be penalized with both fine and imprisonment:
Provided. further, That the maximum fine to be imposed shall be Five million pesos
(Php5.000.000.00) for an individual and Ten million pesos (Phpl0,000,000.00) for a
corporation.

SEC.

. 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 under Chapter VIII of this Act, shail be
penalized with a line of Ten thousand pesos (Phpl0.000.00) for an individual or
Twenty thousand pesos (Php20.000.00) for a corporation

SEC. 55, Overloading. - Any hauler who loads and transports. or permits the
loading and transportation of LPG cylinders quantities greater than the rated capacity
of the vehicle or in such a manner that endangers the life and safely of its passengers
or the public. shall be penalized with a fine of Twenty thousand pesos (Php20,000.00)
for an individual and Fifty thousand pesos (Php30.000.00) for 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

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SEC. 56. 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 DT. shall. upon conviction. be penalized with
fine of One hundred thousand pesos {Php100.000.00) or Three thousand pesos
(Php3,000.00) 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. 57. Sale or Distribution to Non- complying Persons or Entities, ~ Any
LPG evlinder manufacturer, refiner, importer. refiller, dealer of retail outlet 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 upon
conviction. be penalized for each sale or distribution with 4 fine of not Tess than One
hundred thousand pesos (Phyp100,000.00) but not more than Five hundred thousand
pesos (Php500.000.00) or imprisonment of ar Teast six (6) months bul not more than

teva (2) years. or both at the discretion of the court

SEC.

$. Pilferage of LPG. - Any person who pilfers LPG shall. upon
conviction, be penalized with a fine of One million pesos (Php1,000,000.00) for an.
individual and Two million pesos (Php2.000.000.00) for @ corporation 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 second and subsequent violations shall be
penalized with both fine and imprisonment: Provided, further, Thal the maximum fine
to be imposed shall-be Five million pesos (Php5.000.000.00) for an individual and
Ten million pesos (Phpl0.000,000.00) for a corporation

SEC. 59. 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 or broken seals, or with
seal not belonging to the brand owner shall, be penalized with a fine of not less than
One thousand pesos (Php1.000.00) for an individual and Two thousand pesos
(Php2.000.00) for a corporation or partnership for each I.PG cylinder or imprisonment
of at Jeast six (6) months but not more than two (2) years. or both, at the diserction of
the court: Provided. That the maximum fine to he imposed shal! be Three hundred
thousand pesos (Php300.000.00) for an individual and Six hundred thousand pesos
(Php600.000.00) for a partnership or corporation.

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SEC. 60. Refusal to Refund the Deposit. - Any authorized dealer or retail
outlet that refuses to refund the deposit on the LPG cylinder to any consumer shall be
aulministratively charged and upon proper proof. shall be imposed & fine of One
thousané five hundred pesos (Php|.500.00) for each LPG cylinder and a warning that
sts. License to Operate shall be suspended or revoked: Provided, That second and
subsequent violations thereof shall be imposed a fine of Three thousand pesos
(Php3.000.00) per LPG cylinder and the suspension and revocation of its License to
Operate.

SEC. 61. Nonparticipation in the LPG Cylinder Exchange, Swapping and
Rehabilitation Program. — Any LPG refiner. importer. bulk supplier. refiller, dealer
or reui! outlet that deliberately refuses to participate in the LPG Cylinder Exchange.
Swapping and Rehabilitation Program under Chapter XIi of this Act shall be charged
administratively and the suspension or revocation. after due notice and hearing, of its
License to Operate. *

SEC. 62. Other Prohibited Acts. — The following ucts shall likewise be
declared unlawful:

4) Manufacture. sale or distribution of LPG cylinders to the local market
without the necessary 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:

bp Sale and
defined by the PNS:

istribution of LPG cylinders considered substandard as

«) Manufacture or sale of LPG cylinders carrying a brand name, logo.

mark or distinction without the express approval of the registered brand owner,

4) Manufacture of LPG cylinders using substandard or non-industrial
steel plates:
) Wrong of misleading information stamped on the LPG cylinder such as

the tare weight: and

f) Knowingly selling illegally-filled or refilled LPG cylinders by
marketers. dealers or retail outlets:

A fine of at least One hundred thousand pesos (Php! 00.00.00) but not more
than One million pesos (Php1.000.000.00) and imprisonment of at least six (6) years

and one (1) day to twelve (12) years shall be imposed on any person. firm, partners!



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or corporation found guilty of committing any of the other prohibited acts enumerated
above
SEC. 63. Suspension or Revocation of Local Business License or Mayor's
Permit. - The penalties provided berein shall be without prejudice fo the suspension or
revocation of the local business license or Mayor's permit issued by the appropriate
LGU to the LPG industry participant concemed as prov ided in Chapter Ulf of this Act.
SEC. 64. Imposition of Adm

to or in lieu of the institution of a criminal action in the proper court, impose an

istrative Penalty, - The DOE may. in addition

administrative penelty ranging from Twenty thousand pesos {P20,000.00) to Five
hundred thousand pesos (P500.000.00) for each offense in this Chapter and such other
violations of this Act

SEC. 65. "Strike Three" Penalty. - Any person convicted 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. 66. 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 convicted with finality of violations of this Act.

SEC. 67. Violations by Juridical Entities. - lf the violation is commined by a
corporation. partnership. association or other juridical entity, the penalty of
imprisonment shall be imposed on the responsible directors or officers thereof. If the
offender is an alien. he shall be deported immediately. without further proceedings.
after service of sentence.

CHAPTER XV
EDUCATION AND RESEARCH
SEC. 68. Usage Requirements for Customers and End-Users. — The DOF.

and the DTI shall jointly undertake educational and information dissemination

activi

es to enhance customer awareness among 1.PG consumers and end-users. In
addition to such educational program, 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:

(o) Use of only branded. legally-filled and certified LPG cylinders: and

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(©) 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. 69. Public Iaformation Campaig
sith the Philippine Information Agency. the DILLG and such other appropriate

= The DOF shall. in coordination

government agencies. develop and implement an effective strategy for the
dissemination of information to the public about LPG cylinder quality and safety.

SEC. 70. Development Research, ~ The DOF. shall, in coordination with the
DOST and the DTI. conduct study and research for the purpose of developing more
efficient methods of providing safe. clean and hazard-free LP'G consumers,

CHAPTER XVI
FINAL PROVISIONS

SFC. 71. Implementing Rules and Regulations. - Unless otherwise
expressly provided in this Act, the DOE shall. in consultation with the DTT, other
appropriate agencies. the LPG industry participants and consumer groups, be the lead
agency with the responsibility to formulate. issue and promulgate the necessary
implementing rules and regulations within one hundred eighty (180) days from the
effectivity of this Act.

SEC. 72 Transition Phase. ~ In order to provide @ smooth
implementation of the monitoring and supervisory mechanisms provided herein, the
LPG industry participants shall be given a grace period of one hundred eighty (180)
days from the effectivity of this Act. within which to comply with the provisions
hereof: Provided, That during the transition period. the LPG industry participants
shall continue to be bound and made liable under the provisions of existing laws. rules
and regulations not otherwise repealed by this Act. LPG industry participants already
legally engaged in business upon the effectivity of this Act and who ere required to
secure a License to Operate prior to the renewal of their business licenses as provided
in Chapter III of this Act shall not be required to obtain & License to Operate for the
duration of the grace petiod,

SEC. 73. Joint Congressional Oversight Committee. — There is hereby
crcated a Joint Congressional Oversight Committee 10 monitor the implementation of
this Act. The committe shall be composed of five (5) senators and five (5)
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

36


the Chairpersons of the Senate Committees on Energy and Trade and Commerce and
the House Committees on Enerey and Trade and Industry: Provided. “That the
Minority in both the Senate and the House of Representatives shall be equitably
represented therein.

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. 74. Legal Assistance to Public Officials. - Public officials and other
authorized persons acting under the direction of the Secretaries of the POE, the PTL.
the DILG and other concemed government agencies shal be provided with Sree legal

assistance. Liabili

y insurance and other forms of protection and indemnification for all
costs and expenses reasonably’ ineurred PY uch persons, in connection with any civil
andior criminal action. suit or proceeding to “which they may be or bave been made &
party by reason of the performance of their funetions or duties, unless they are finally
adjudged in such action or proceeding 10 be liable for gross negligence oF misconduct
or grave abuse of discretion.

SEC, 75. Construction and Interpretation Clause. - 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 end the
safery of the consumers and the general public

SEC, 76. Separabifity Clause. ~ Sf for any Te9s0r- any chapter. section oF
provision of this Act shall be declared unconstitutional, itlegal. oF invalid, such parts
not affected thereby shall remain in full force and effect.

SEC, 77. Repealing Clause. - All laws, decrees, executive orders.

proclamations and administrative regulations. or parts thereof inconsistent herewit
are hereby repeated or modified accordinely

SEC. 78. Effectivity Clause. - This Act shall take effect after fifteen (15)
days after its publication in the Official Gazette or 1m at Yeast two (2) newspapers: of
general circulation.

Approved.


FACT SHEET

House Bill No. 5052
{in substitution to HBs 1418 and 3976)

AN ACT TO ESTABLISH THE REGULATORY FRAMEWORK
FOR THE SAFE OPERATIONS OF THE LIQUEFIED
PETROLEUM GAS (LPG) INDUSTRY, PROVIDE ADDITIONAL
POWERS TO THE DEPARTMENT OF ENERGY, DEFINE AND
PENALIZE CERTAIN ACTS, AND FOR OTHER PURPOSES

introduced by REPRESENTATIVES YAP S., TY, LEONEN-PIZARRO, TUGNA,
CABALUNA. GARIN S., RIVERA, ALCOVER, BATOCABE, CO, GARBIN. TING,
VELASCO, PAYUYO, SAMBAR, MARCOLETA, MAGSAYSAY E., MENDOZA R.,
CUA, CASTELO, MAGSAYSAY M, CALIMBAS-VILLAROSA, SARMIENTO C.,
GARCIA AR, APACIBLE, DUAVIT, BIRON, DEFENSOR, ALVAREZ A., TRENAS,
CASINO, VILLARICA, MANDANAS, FERNANDEZ, GARAY, TEODORO, DEL
ROSARIO AR, SACDALAN, OSMENA, JOSON, RODRIGUEZ t, LACSON-NOEt,
YU, FERRER J, SAHIDULLA, LAGDAMEO A., BONOAN-DAVID, MELLANA,
SAKALURAN, QUISUMBING, UNABIA, COLMENARES, HARESCO, VILLAR,
PANCHO, ENVERGA, COJUANGCO E, CAJAYON, RODRIGUEZ R,
ROMUALDEZ, ARROYO D., GONZALES A., PANOTES, BAGASINA, ABAD,
COJUANGCO K, PUNO, ANDAYA, APOSTOL, BELMONTE V., BENALDO,
AMATONG, LIMKAICHONG, ABAYA, GOLEZ, GARCIA-ALBANO, GOMEZ,
UNGAB, MIRAFLORES, VALENCIA, LOPEZ C.V., ESPINA, SALVACION, DEL
ROSARIO AG. LOYOLA, DE VENECIA, RIVERA, JAAFAR, BENITEZ, DY,
ANTONINO, BARZAGA, DAYANGHIRANG, SALIMBANGON, MADRONA,
ENVERGA, PACQUIAO, BICHARA, KHO, JALOSJOS C., LAPUS, PING-AY,
LOPEZ, ¢. J, TIENG, PERRIOL, VIOLAGO, EJERCITO, VILLAFUERTE,
BAGATSING, EVARDONE, MACAPAGAL-ARROYO J. M., ALBANO, DIMAPORO,
MERCADO-REVILLA, CELESTE, PANGANDAMAN AND PADILLA

Committee Referral: COMMITTEE ON TRADE AND INDUSTRY (Primary)
Committae Chairperson’ REP, ALBERT RAYMOND S. GARCIA
Committee Referral: COMMITTEE ON ENERGY (Secondary)

Committee Chairperson: REP. HENEDINA R. ABAD

REP. HENEDINA R. ABAD

OBJECTIVES:

+ To enjoin accountability and responsibility among LPG and related industry

participants and promotes quality, safety and fair ade practices in the
business

+ To promote consumer welfare and enhances competition by providing stricter
guidelines to all persons or entities engaged in the business and all other


activities involving or related to LPG, Auto-LPG, LPG cylinders, LPG
containers and ancillary equipment and LPG seals.

KEY PROVISIONS:

Designates the Department of Energy (DOE) as the lead agency and provide
additional functions in the performance of their duties, on all matiers
conceming the LPG industry.

Assigns the Department of Trade and Industry (DT) as the tead agency on alt
matters conceming LPG cylinders ‘and ancillary equipment.

Allows for affective coordination between the DOE and DTI, and grants certain
powers and functions to other agencies ‘and local government units for the
effective implementation of this Act.

Requires the periodic monitoring of the operations, activities, facilities and
equipment of LPG industry participants, and sets standards and requirements
on, among others, measuring devices, cylinder seals, LPG cylinder exchange,
swapping and rehabilitation, Auto-LPG and labeling requirements for LPG
Cylinders.

Establishes presumption of ownership af the LPG cylinder or container to the
brand owner whose permanent mark appears ‘on the LPG cylinder.

Identifies and defines prohibited acts, and imposes fines and/or imprisonment
upon conviction to any person who commits such illegal acts.

Bans the importation of used or second-hand LPG cylinders.

Mandates the dissemination of information to the public about LPG, cylinder
quality and safety, and the creation of a central data base of industry
participants.

Mandates any person or entity intending 10 engage in business involving LPG,
LPG cylinders or ancillary ‘equipment shail secure 2 “License to Operate” from
the DOE prior to commencement of commercial operations and annually
thereafter.

Requires any person whe intends te engage in the business of manufacturing,
re-qualifying, or repairing LPG cylinders, to obtain a Certificate of
Accreditation from the DT! prior to the commencement of its operations and
annually thereafter. Any person already engaged in the business of re-
qualification, repair, scrappage of cylinder and seat manufacturing upon the
effectivity of this Act to apply for a Certificate of ‘Accreditation from the OT!
prior to the renewal of its business permit.

Requires all LPG cylinders to be provided with seals after filling, which
Contorm to DOE specification. LPG cylinders with tampered or broken, seals


shall not be sold or distributed and that cylinder seal manufacturers shall not
sell seals of an LPG brand owner to any trand owner unless allowed by both

the brand owner itself and the DOE.

= Requires all trucks and other vehicles used jor transporting and delivering
LPG cylinders shail be open and the same ‘ghall be registered with the DOE.

» Mandates the dissemination of information to the public about LPG, cylinder
quality and safety, and the creation of @ central data base of industry

participants.

«+ Creates a Joint Congressional Oversight Committee composed of five (5)
‘senators and five (5) 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 Chairmen of the Senate Committees

‘on Energy and Trade and Commerce and the House Committees on Energy
‘and Trade and Industry: The minonty in both the Senate and the House of

Representatives shall be equitably represented therain

* Grants free legal assistance to public officials oF other authorized persons
acting under the direction of the Secretaries of the DTI, DOE, DILG and other
concemed agencies in connection with any civil or criminal action, suit or
proceeding to which they may be, or have ‘been made a patty by reason of the
performance of their functions ar duties, unless they are finally adjudged in
such action or proceeding to be liable for gross negligence or misconduct or

grave abuse of discretion.

RELATED LAWS:

«Republic Act No. 8479 ~ An Act Deregulating The Downstream Oi! Industry.

And For Other Purposes otherwise known as the "Downstream Oil industry
Deregulation Act of 1998."

«Republic Act No. 7394 - The ‘Consumer Act of the Philippines

» Republic Act. No. 9514 - Revised Fire Code of the Philippines of 2008


FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES, )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No__1418

Introduced by Representative Susan A. Yap

EXPLANATORY NOTE.

‘This bill seeks to establish a regulatory framework in the trade for liquefied petroleum
gas (LPG) by setting standards and requirements for the LPG, auto-LPG, LPG containers and
LPG cylinder industries, with the end-goal of promoting general welfare.

‘The LPG industry has already marked a significant portion in the market due to its
high demand. Operating under a deregulated downstream oil industry structure, it allows its
market participants to engage in unfair and unsafe trade practices, hurting consumers and to a
large extent, causing negative externalities to society.

In view of such concerns, this bill proposes to put in place a comprehensive
framework for the monitoring and supervision of the said industry, placing the Department of
Energy (DOE) as the lead implementing agency in ensuring that participants comply with
national product quality and worker safety and consumer welfare standards. It also calls on the
participation of the Department of Trade and Industry as well as local government units in
enforcing stricter guidelines in the sale, requalification, distribution and repair of LPG
cylinders, among others. Penalties shall be imposed to prohibited acts, such as engaging in
business without standards compliance certificate or without accreditation, obstruction of
inspection, illegal storage, failure to comply with product standards, adulteration, under-filling,
unauthorized trading of LPG cylinders, tampering of these cylinders, importation of used or
second-hand LPG cylinders, sale or distribution to non-complying persons ot entities, and
pilferage of LPG, among others. Information shall be disseminated accordingly to the general
public.

‘Through this measure, we will be able to contain the risks associated with sub-standard
LPG products, which pose serious threats to society. A two-edged sword, it promotes fait
competition amongst businesses while protecting the rights and welfare of the consumers.

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



FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No. 1418

Introduced by Representative Susan A. Yap

AN ACT
TO ESTABLISH THE REGULATORY FRAMEWORK FOR THE SAFE OPERATIONS
OF THE LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY, PROVIDE
ADDITIONAL POWERS TO THE DEPARTMENT OF ENERGY, DEFINE AND
PENALIZE CERTAIN ACTS, AND FOR OTHER PURPOSES.

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

CHAPTER I
GENERAL PROVISIONS

SECTION 1, Title, -‘Vhis Act shall be known as the "LPG Industry Regulation and Safty Act of
2010."

SEC. 2. Declaration of Policy. - Ie shall be the policy of che State to establish a regulatory
framework for the refining, importation, refilling, re-qualification, distribution, and marketing
processes of the Liquefied Petroleum C after referred to as "LPG") industry to promote the
general welfare, encourage the establishment of standards of conduct and codes of practice for LPG
businesses, and to ultimately address the quality and safety concerns under a deregulated
downstream oil industry steucture. Consequently, the State shall rationalize all applicable laws and
executive issuances on the LPG industry to strengthen and enhance existing mechanisms against
hazards to health and safety, and deceptive and unconscionable trade acts and practices within the
industry. To this end, the State shall undertake the implementation of this Act primarily through the
Department of Energy, in coordination with the Department of ‘Trade and Industry, the
Department of Justice, the Department of Interior and Local Government, and other appropriate
government agencies and instrumentalities

SEC. 3. Construction and Interpretation Clause. ~ Any doubts in the interpretation of any
provision in this Act shall be’ interpreted in favor of the interests of the consumer particularly to
ensure the safety of consumers and the general public.

SEC. 4. Definition of Terms. ~ For the purposes of this Act, the following terms are herein
below defined

(a) "DENR" shall refer to the Department of Environment and Natural Resources;
0) "DILG" shall refer to the Department of Interior and Local Government;
"DOR" shall refer to the Department of Energy
'DOST" shall refer to the Department of Science and Technology;
(c) "DIT" shall refer to the Department of Trade and Industry

(8 "LGU" and "LG

respectively:

shall refer to a local government unit of local government units,


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(g) "PNP" shal refer to the Philipp al Police:

sy "SEC" shall refer to the Securities and Exchange Commission;

“Accreditation” shall refer to the formal recognition given by DTI that a re-qualifier of LPG
oylnden has complied with PNS 17025:2000, “General Requirements for the Competence of
Testing ‘and Calibragon Laboratories," and PNS 03: inders for Liquefied Petroleum
Gas," Part 2 - "Methd of Re-qualification;"

§) "Ancillary Fgrdpment" shail zefer to such equpment, parts, and other devices necessary
and indispensable fof the safe and proper operation of an LPG system such as, but not limited to,
valves, hoses, and regulators;

(k) "Brand Oijrer" shall refer to a person, natural or juridical, owning the brand, name, logo,
color, mark, and/or distinction as registered DIE

(1) "Bull Conner” shall refer to any person or entity whose regular use or consumption of
LPG is limired to itsfown use and requires bulk storage of LPG at a volume as may be determined
by DOE; 7

()" Bulle Loder" shall refer to any person or entity, which engages in transportation and
caruge of LPG inflarge quantities in barges, mil or road tankers, bullet trucks and similar
transportation facilities;

‘n) "Bulk Supplier” shall refer to any person who engages in the sale or distribution of LPG in

such large quantities.
(0) "Certification" shall refer ~o the written assurance given by DTI that the LPG cylinder has

complied with PNS 03:2000, "Steel Cylinders for L:quefied Petroleum Gas”,
and Part 3 - "Requirement for Repair,”

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

(@) "Cross Filjng” shall refer to the filling of cylinders by a person other than by the brand

', Part 1 - "Specification"

owner;
© "Cplindsr"W>e "LPG Cylinder” shall refer co any portable pressure-vessel or container for
LPG, designed for tH transportation and storage of LPG;

(8) "Cylinder Industry Participants" shall refer 10 persons or entities engaged in activities or
businesses related td the manufacture, importation, transportation, sale and distribution of LPG
cylinders and ancillaty equipment, including but not limited to, cylinder and ancillary equipment
manufacturers and ithporters, re-qualifiers, repairers, scrapping centers, cylinder seal manufacturers
and such other;

(® "Glinder Owner" shall refer 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
cylinder in the mannée prescribed by the DTT and the DOE:

(u) "Cylinder Goapping” shall refer to the industry practice of exchanging ILPG cylinders;

(8) "Defetive Blinder” shal! refer to damaged. unsafe and dilapidated cylinders due to corrosion
or pitting, dents, cuts, gouges, digs, bulges, leaks and other similar defects that render the cylinder
unsafe for distribution in accordance with the guidelines set by the DTI, thus creating a substantial
tisk of injury to the public;

(w) "Dealer" shall refer to any person involved in the sale or trading of LPG cylinders to
coosumers and/or retail outlets:

(s) "Hauler" Shall refer to any person involved in the distribution and delivery of LPG in
cyhnders from one pice to another, whether engaged in such activity for purposes of directly selling
to consumers or oth@Fwis

() "Ppporterfshall refer to any person engaged in the importation of LPG whether for
Procesriigaagle o: offh use;

oi sdustry Participants" shall refer to persons o: entities engaged in activities or businesses
related to’ tHe manufacture, importation, transportation, distribution or sale of LPG, including,
among others, Cylinder Industry Participants and LPG Ins icipants as defined in this Act;

(@2)"LPG'~ shall refer 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 PNS. i

try P,



(bb) “LPG Industry Partripants” shall refer to persons or entities engaged in activities or
businesses related to the manufacture, importation, transportation, sale and distribution of LPG,
including but not limited to LPG refiners, LPG importers, re-fillers; piped LPG providers, haulers,
dealers, service stations, retail outlets and seal manufacturers;

«)" Marketer shall refer to any person, whether natural or juridical, engaged in the sale of
LPG, whether in bulf or retail;

(ad) [Peon products” shall refer to the products formed in the course of refining crude
petroleum through Qistillation, cracking, solvent refining and chemical treatment coming out as
primary stocks from/fhe refinery such as but nor limited 10 LPG,
naphtha, gasoline, sdlvént, kerosene, aviation fuels, oils, waxes and petrolatum, asphalts, bitumen,
coke and refinery sludge, or such refinery petroleum fractions which haire not undergone any
process or uealment as t produce separate chemically-defined compounds in a pure or
commercially pure state and to which various substances may have been added to render them
uitable for particular uses, provided that the resultant product contains not less than fifty percent

¥/4) by weight of such petroleum products;

(ce) "Philippine National Standards" ox "P'S" shall refer to the standard promulgated by the
Bureau of Product Standards (BPS) of the DTI relating to product specifications, test methods,
terminologies and standardization procedures, guidelines or practices,

(€) "Piped LPG Provider" shall refer to any person engaged in the business of supplying or
disttibuting LPG to consumers through. a pipeline system, including operators of central storage
compounds for at PG oF reticulated system facilities;

(eg) "Pipelin§ Syste" shall refer to 4 newwork of pipes or similar conduits used for the
conveyance Bf LPG rom the piped LPG provider to consumers;

(hh) "Primary Storage Facilities” shall refer to the plant, depot, equipment and other attendant
facilities, such as uniderground caverns, refrigerated tanks, and pressurized | steel tanks, used for
storage of LPG;

(i) “mie 6 Serviceman" shall refer to an individual who has been trained, qualified and
certified by the DOE or any deputized agency thereof, or to an individual who has successfully
completed an approved training course for [LPG servicemen in a training schoo! duly recognized and
accredited by the Philippine government;

i) "Refer" shall refer to (1) a service provi
6ylindets on the latter's behalf, or (2) any person or entity who refills LPG into one’s own cylinders;

(kk) "Refilling Plant" shall refer to any installation that is used for refilling LPG into cylinders
and has LPG bulk storage and refilling facilities therefore;

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

(mm) "Re qualification" shall refer to the method or procedure by which a cylinder is
subjected to inspectfon and reevaluation by DI in accordance with the specifications set forth in
the PNS 03-2000,M'Steel Cylinders for Liquefied Petroleum Gas," Part 2 - Method of Re-
quilification}to detefinine its acceptability for continuous use and distribution and_ subsequent repair
oor sezappage, wherelappropriate;”

(an) "Resqualifier" shall refer to any person duly accredited by the DT] pursuance to this Act to
engage in the business of re-qualifying LPG

(oo) "Repair" shall refer to the removal and replacement of parts ot attachments of LPG
cylinders or the a of any other necessary corrective and restorative measutes pursuant to
the PNS, to restore fhe fitness of LPG cylinders for refilling and distaibution;

(pp); "Repairfy” shall refer to any person or entity duly certified by the DTI to engage in the
business of fepaitingfLPG cylinders;

(qq)""Retail Outi” shall refer to any
quantities as may be determined by the DO

(rp)"Reticulated System" shall refer to 2 means of supplying LPG through a pipeline network
from a centralized cylinder bank or bulk installaion to multiple customers situated in a common
locality:" 5

er authorized by a cylinder owner to refill

ty that sells LPG cylinders directly toa consumer in

eon


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(ss) "“Surappage" shal? refer to the destruction of defective LPG cylinders declared by a re:
or the DTI to be unfit for use;
(e) "“Sorpping Center” shall refer to any person oF entity engaged in the business of disposing
defective LPG cylinders;

(au) "Sea" shall refer to the protective cover placed on the valve of an LPG cylinder;

(vv) "Servite Station "shall refer to a retail establishment engaged in the business of selling
LPG in cylinders as a retail outlet and in distributing and dispensing of LPG to consumers for
automotive use. It shall be deemed a dealer or retail outlet for purposes of this Act; and

(w)}"Tare weight” shall refer co the net weight of the LPG cylinder excluding its contents, as
engraved ia jthe collgr and painted in the body thereof and shall be expressed in kilograms in
accordance ith the (becifications as may be prescribed by the DTL

qualific

CHAPTERIL
IMPLEMENTING AGENCIES

'
C. 5. Lead Agency. - Unless expressly stated in this Act that a particular function shall be
the sesponsibility of another government agency, the DOK shall be the primary government agency
responsible for the implementation and enforcement of this Act. The DOF. shall supervise and
monitor the LPG industry and its participants to ensure compliance with national product quality,
environmental and worker safety, and consumer welfare standards,

SEC. 6, Additional Powers and Functions of the DOE Secrtay. ~ In. connection with the
enforcement of this Act and in addition to his/her powers and functions under existing laws, the
DOE: Secretary shall have the’ following powers and functions:

(@) Administag and supervise the enforcement and implementation of this Act, including the
promulgation of Implementing Rules and Regulations, and issuance, from time to time, of other
regulations, grders on cixculars necessary to implement this Act,

(b) Formulae and implement policies, programs and regulations on the LPG industry,
including the impoftation, exportation, stockpiling, storage, shipping, transportation, refining,
processing, marketing ahd distribution of LPG, whether distributed in cylinders, through pipelines
or other means, to ensure that product quality, environmental and worker safety, and consumer
welfare standards are met;

(© Inspect and evaluate LPG and LPG cylinders in circulation, at any time from and after its
purchase by a refiner, marketer, or refill ind while it is in circulation or intended for distribution
«othe public, for purposes of determining conformity to established quality and safety standards for
LPG cylinders developed and established by the Bureau of Product Standards (BPS);

(@) Establish safety standards for refilling plants, depots, storage areas, transportation and
other facilities of LPG industry players and inspect and evaluate refilling plants, depots, storage
areas, transportation and other facilites or business premises of LPG Industry Participants to en:
compliance to safety standards;

{e) Direct LPG brand owners, refillers, dealers and retail outlets to periodically submit
cylinders for requalification, and to secure proper proof of compliance therewith in accordance with
the requirements of DTI;

6 a sols propio or upon report of any person, possible infractions of this Act by

industry par ano initiate the necessary actions warranted under the circumstances, including
the recall, prohibitiGh, forfeiture or seizure of substandard LPG and LPG cylinders as well as
illegally filed LPG eylinders as defined in Chapter VI of this Act, the filing of charges with. the
proper ‘court or government agency, and the enforcement of administrative sanctions as provided
under this Acts x, 7

@ Recommifad:to the concerned LGUs the suspension or revocation of the busin

permits or ligenses of LPG industry participants who violate the provisions of this Act;



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{h) Issue Standasds Compliance Ceenti
with Chapter ITI of this Act, and to revoke the s:

ii) Impose and collect admimsteative fines for violation of this Code, as well as fees or
similar chatges for its setvices, including the processing of applications for Standards Compliance
Certificate and collection of administrative fines for violations of this Act;

@) Create and maintain 9 central database of industry participants, and an inventory of
existing and projected LPG supply levels in the sy, which shall be updated monthly through its
own initianve and through reports of LPG industry participants;

(&) lnvestigate and keep a record of incidents of injury or damage to person or property,
caused by on attributdble to the improper production, storage, handling or use of LPG for purposes
4g or filigg the appropriate inst responsible persons;

@ Fetablish kind develop research a ns 10 develop new uses for LPG,
promote improved and innovative methods and rechnologies for safe and efficient production,
stage, handling or yse of LPG, and te

(om) Consult dad coordinate, on a regular basis, wath LPG industry participants, assocsaions
and consumers in furtherance of the objectives of this Act;

es to LPG industry participants in accordance

(n) Coordinate with other government agencies, bodies and instramentalities to ensure the
effective implementation of this Act, which shall include the power to depntize other agencies ro
assist the DOE, ia implementing its mandate under this Act,

(Q) Exercise such other powers and functons as may be necessary or incidental to attaining
the objectives of this Act, and

(p) Investigate, prosecute, and Impose penalties for dumping activities or unauthorized
filling of bulk tanks installed in industrial LPG consumes by bulk suppliers other than the owner of
thewaks

i

SUCHET. Powys and Pinction
exclusive powers andfunctions:

{a} Develop, formulate, promulgate, review and revise the PNS for LPG, LPG eylinders, and
other ancillary equiprient;

(b) Igspect add evaluate LPG cylinders, whether manufactured locally or imported, prior to
any sile or distribution to LPG refiners or re-fillers, and certify to their conformity to PNS and their
fitness for public sale and disiribution;

(©) Inspect and evaluate ancillary equipment, whether manufactured locally or imported and
certify to thei confosmity to PNS and their fitness for public sale and distribution

(@) Grant acéreditation and certification of conformity to PNS to re qualifiers, repairers,
sctapping cénters, eflinder and seal manufacturers and other independent, competent, private
persons, and entities that provide products and se-vices ro ensure compliaace by industry p:
with the PNS for LPG eylinders and ancillary equipment, in accordance with Chapter IIT of d
the same; and

(©) Extend all necessary assistance to the DOE in the implementation of measures in
furtherance of the objectives of this Act.

f DT! ~ Under this Act, the DTI shall have the following

‘icipant
s Act,

SEC. 8. Powers and Prmetions of DILG. - Cader this Act, the DILG shall have the following
poswers and finetions
{@) Cpordinate with LGUs and the PNP

Act, and of the order, rales, regulations and
for the suspension E ‘ocation of business pe
to be in violation of this Act;

()) Coordinaie with the DOE and the DiI in the dissemination of information relevant to
the implemeatation aif this Act, particularly to the LGUs and the PNP; and

(6) Bxtend alfinetessary as
dn furtherance of this Act.

the orderly and effective implementation of this
vices pursuant thereto, including recommendations
licenses of LPG industry participants found

cance (0 the DOE with respect to the enforcement of measures

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SEC. 9. Pons and Punctio ant to their powers provided by law
especially under Republic Act No. 7160, otherwise known as the Local Government Code, or, upon
aecommendation of the DOE, and upon due notes and heating, shall have the power to suspend or
revoke the business permit of license of any PG industry participant within their respective areas of
jurisdiction for violation of the provisions of this \cr Promd-d. Thar upon notice by the DOE. of.
revocation of che Standards. Compliance Certifieare of an LPG industey parucipant issued by the
DOE under Chapter TH of this Act, che LGU shall immediately revoke the business permit ot
license of said LPG industry participant.

af LGUs - LGUs,

In case of conflict between the decision the DOR and the LGU involving matters,
especially violations, covered by this Act, the decision of the DOE shall prevail

SEC. 10. Teehprica’ Working Group. - The DOE shall be authorized to convene a Technical
, Group to ssist the DOE. in the thorough review and evaluation of the rules and
segulations, policies, Safety standards and PNS affecting the LPG industry. The Technical Working
Group shall be comppsed of not less than ten (10) or more than fifteen (15) representatives of the
pertinent implementig government agencies and the private sector particularly industry participants
and consumer groups. Private sector represen

determined and appointed by the

nm the Technical Working Group shall be

CHAPTER TH
§ MONITORING AND ENFORCEMENT MECHANISMS

t

LL. Onnerbip of 1.PG-Cylinders. - The provisions of the Civil Code to the contrary
notwithstanding, the brand owaer whose permanent mark appears on the LPG cylinder shall be
presumed the owner thereof, irrespective of the party in custody or possession of the cylinder, and
regardless of whether or not such cylinder is or continues to be properly marked, stamped or
identified to contain its LPG brand, or whether or aot

ich cylinder is in compliance with or
rd prescribed under law or by the DTI
equivocal proof or indication thar such cylinder

finer or importer to an untelated thisd party

continues to comply with any other product or quality standa
pausuant to this Act, unless otherwise there 1s anv

vas sold, alienated, of otherwise di
under a written instrument,

‘The brand owher shall, through its authorized dealer or outlet, refund the amount indicated
in the deposit slip or Keceipt shen the consumer returns the cylinder. The brand owner shall have
the obligation to ensufe that its cylinders comply with all required quality and safety standards and
specifications | before theg are released for distribution: Provided, ‘That receipt by the DOE of a
verified noneé or repart fom the brand owner rear olen or missing LPG «sliders
shall prima jack relievethe cylinder owner of the obligation to ensure the quality and safety of such
LPG eylinders. Such report may be rebutted by con

ary evidence.

SEC. 12. Undertaking to Comply with Requirements. - Any person or entity who intends to engage
in any business or activity which shall render it an .adustey participant as defined in this Act, shall
undertake to comply with the requirements of this ct, its implementing rules, and regulations, and
such other issuances bf the DOE, under a verified instrument to be executed in such form as
required by the DOF,£Due filing of the verified undertaking shall be a.condition precedent for the
assuiance of the Standagds Compliance Certificate required under this Act: Prisided, That submission
of such undertaking dées not exempt such person or entity from securing any other certification of
quality, health! safety, Security, or environmental clearance from the proper governmental agencies
or instramentalities as re be provided by other laws.

Any pérson or'entity intending to import or export LPG or LPG cylinders shall, in addition
tw the requirement for a verified undertaking, furnish a report to the DOE prior to every

a

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impurtation oF exportation: Proves all TPG at
accordance with the law, including international

nd 1PG eslinder importations shall be in
ments to which the Philippinés is a signatory

yes f DOR- The DOE, as the case may be, shall have the power
and authority co require industry part written, electronic or other form of reports
or disclosures, as the DOE, may deem reasonable and necessary to perform their functions under
this \et. Any industey participant who & wy such report of disclosure within che period
and in the manner prescribed by the DOE shall be penalized under Section 35 of this Act.

SEQ 13. Reports and Di

ints to subm

SEC. 14. Central Database of Industry Participants
parucipants shall include their corporate or b
tticers; principal office or bustness addres
name or logo for LPG, LPG cylinder, facilitie
cylinder seal manufacnurers; violations comn

hase of LPG industry
of all directors and

The central data

‘ss name or trade
rpose or nature of business; zegistered brand
1d equipment; haulers, dealers, retal outlets and
d or incidents relating to! such violations, if aay;

agreements with other industey paricipants, such as for cross-filling and similar arrangements; list

oflost, stolen or missing LPG cylinders; and such other relevant information as may be determined

by the DOE. The central database shall be created b the DOE within one (1) year from the

cflectiviny of this Act. This cenwal database shall be updated on a monthly basis and shall be made

available to the public and through the Internet subject to reasonable fees and charges and during
ice hours,

of

SEQ, 15. Standards Compliance
{a) Requirement Psior to Engaging in Busness. - Any person or entity intending to engage in
> involving LPG, LPG cylinders or aneillary equipment or in any activity that shall reader it
an industry Participaat as detined in this Act shall secure its Standards Compliance Certificate from
the DOE. prior to ¢onimencement of commercial operations and annually thereafter. For those
subject ro Section 7°(b}, (c), and (d) which requires an accreditation or certificate of conformity to
PN issued by the DTT, submission of the such accreditation or certificate of conformity shall be a
cement prior to the issuance of a Standards Compliance Certificate by the DOE,

busin

req

For purposes of this Act, the Standards Compliance
ot entity has complied with the safety rules and regulacons prescribed by the DOE and other
pertinent government agencies; Provided, thar such other endorsements by other government
agencies applicable to the particular classification of the industry participant as defined and stated in
this Act shall have been fully complied with: Pred fiatber, Vhaz, a brand owner shall be responsible
for the following:

1) proper mannfacture, maintenance, 3
release thereof to the public, in accordance wi
2) proper filling of cylinders;

3) assurance that 1.PG is readily available at his refilling plant/s for refilling sv his own
evlinders: and

4 ceiling ‘oGhis own cylinders, unless authorized by another brand owner.

stificate shall certify that such person

1d re-qualification of all its cylinders prior to the
this Act;

No ‘industry, participant shall engage in business without first having duly secured a
Staridards Complianée Certificate. Any industry participant that subsequently engages in an activity
or business involving EPG o: LPG cylinders cutside of the scope of its Standards Compliance
Certificate shall duly notify the DOE and secure the proper $ ndards Compliance Certificate from
the 1JOE for the said new activity or business, where deemed necessary by the DOE

The DOE, shall preseribe specific gundelines for compliance of eetail oudets, dealers and
haulers in echnote aréas outside Metro Manila, in whi

eved

care the verified undertaking required undcs
nail, without prejudice 10 the conduct of a

this Chapter may be submitted through regi
standards compliance inspection.



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(b) Persons or Entities Already Engaged in LPG Business. - Subject to the provisions of
Scetion 31 f this Act, "any industry participant already legally engaged in business upon effectivity
of this Actishall obtain a Standards Compliance Certificate prior to the renewal of its business
license and annually thereafter, in accordance wit the rules, regulations, and guidelines issued by the
DOE

(6) Bulk Consumers, - A bulk consumer shall be required to secure a Standards Compliance
Certificate from the DOE. prior to its storage of |.PG, and annually thereafter prior to its renewal of
business permit: Provided, That if the bulk consumer has secured a similar certificate (rom the
Department of Labpr and Employment (DOI!) and the Bureau of Fire Protection (BFP), such
certificate fom these agencies shall be deemed substantive compliance under this Act.

() Required Submissions for Standards Compliance Certificate, - A Standards Complisiice
Certificate shall only be issued upon a satisfactory finding of the applicant's compliance witl: the
provisions of this Act/and submission of requirements, which may include the following, where
applicable:

1) ister i of compliance ot applicant's facilities with fire safety laws and regulations

fiom the Bureau of Fire Protection (BEP);

2) Environmental Compliance Certificate (FCC) from the DENR;

3) Product liability insurance’ cestiticate from an insurer duly registered with and licensed by
the Insurance Commission;

4) Permits on suitability,
existing operation;

5) Compliance with the provisions of Republic Act No. 9514, otherwise known as the
Revised Fire Code of the Philippines of 2008 , and/or pamphlet 58 of the National Fire Protection
Association (NFPA 58), otherwise known as the "Liquefied Petroleum Gas Code" and

6) Accreditation or certificate of conformity 10 PNS issued by DTI as provided under
Section 7 (b), (©) and (€) of this Act.
7) Sueh ca documents or requirements as the DOF. may prescribe as necessary for the

afety and soundness of plant and facilities for the proposed or

effective implemenfticn of this Act.

(©) Renewal and Posting of Standards Compliance Certificate, - The Standards Compliance
Certificate shall be renewed annually and shall be prominently posted ot displayed in a. public
wecessible and conspicuous area within the business premises of the industry participant

;

SEG, 16, Cettifcate of Accreditation jor Manifactuers, Re quaiiers, Repairers of LPG Cylinders and
Chitner SeabManufadpurys - Prior to the commencement of its operations and annually thereafter, any
person whd inven td engage in the business of man Wg. te-qualifving, of repairing LPG
cylinders, stall obtain a Certificate of Accreditanon from the DTI prior to the commencement of irs
operations and annually thereafter.

Any person already engaged in the business of re-qualification, repaie, scrappage or cylinder
and seal manufacturing upon the effectivity of this Act shall apply for a Certificate of Accteditation
from the DTI prior to the renewal of its business permit

°.17. Monitoring and Standards Compliance Inspection.
(a) Monttofing of Facilities and Equipment. - The DOE shall monitor the refining,
inepottaciod and distribution of LPG and conduct annual inspections of refinery, storage, hauling,
transportation, refilling, or installation facilities and equipment to ensure that clean, environmentally.
safe and w¢zker-beBigit technologies are appliec, and to ensure conformity with quality and safety
standards and-other mandatory requirements uncer this Act.

q f -



0

(b) Standards Compliance Inspection. ‘The DO!
Certiticar

hall not issue a Standards Compliance
pnless iis shown, upon proper conduct of standards compliance inspection, that the
industry papticipani has complied with this Acc and such other rules and regulations as may be
prescribed by the DOE,

(9 Frequency of Standards Compliance Inspection. - The DOE may, motu propio or upon a
verified starement or complaint by any person, conduct regular or random inspections of the
refinery, storage, Jhauling, transportation or installation facilities and equipment of industry
participants as it méy deem reasonable and necessary to implement the purposes of this Act.

{d) Conduct of Standards Compliance Inspection. - The DOE shalll prescribe guidelines for
the proper conduct of the standards compliance :nspection, including but not limited to the scupe of
the relevant premises and records as may be subject to inspection.

(© Power to Deputize. - The DOE may deputize such government agencies it deems
ary (© assist its functions as provided in this Section.

nei

SEC. 18, Requirement for Business Permit, - ‘The Standards Compliance Certificate provided
under Section 15 of this Act shall be a mandatory requirement for the grant ot renewal of any local
government licens or permit to engage in business involving LPG, LPG cylinders, ot ancillary
pele of whether such products or activities constitute the entire or a portion of the

business foF which 4 Dfsiness license is sought by the applicant,
' ‘

SEO: 19. Isihanee of Receipts

@¥ ‘tansactjons in Bulk.- All transactions involving the sale or transfer of LPG in bulk must
be covered|by a form bearing, in’addition to other requirements under applicable laws, the following

1) registered name of the seller;

2) address of the seller;

3) date of the transaction;

4) quantity dx volume of the product;

5) plate nurhber of transporting trucks or repistered name of transporting barge;

6) serial/ tracking no. of brand owner

7) total price of the transaction; and

8) such other information as may be prescribed by the DOF. with the concurrence of
affected industry players.

(0) Transactions in Cylinders. - All transactions involving the sale’or transfer of LPG from
dealers to retail oh and to direct consumers must be covered by an official receipt or sales

invoice bearing, in ifldition to other requirements under applicable laws, the following information:
1) registered name of the seller;
2a ren lp ce
3) date of tile dlarisdetion;
4) brand of LPG;
serial /uagkidg nd. of brand owner
6) ret weight ot weight of the LPG contained in the cylinder;
7) uinit priceéper cylinder:
8) total price of the transaction; and
9) such other information as may be required by the DOR.

All other transactions involving the sale or transfer of possession or ownership of LPG from
one industry participant to another must likewise be covered by an official receipt or other written
instrument hearing the above information, as applicable.

SEG. 20. Dielaration of LPG Cylinder as Iriurions, Unsaje ox Dangerous. - When the DOE. finds,
‘motu propio or-upomt petition of any person, that an LPG cylinder is defective and hence, possibly
injurious, unsafe or dangerous, itshall, after due notice and hearing, issue the appropriate order for

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its versal caliph recall, seizure, impoundment or prohibition’ from public sale or
disenbution® Provided, That, in the sound discretion of the DOE. it may declare an LPG cylinder to be
imminently injurious, unsafe or dangerous, and order its immediate recall, seizure and
impoundment, in “fs ease the cylinder owner shall be afforded a hearing, within forty-eight (48)

hours from fssuaneé| of such order, for the purpose of determining the propriety of the recall and
seizure of the cylinders: Provided, fintler, ‘That such a declaration shall be limited to instances when
the cylinder is already filled and already sealed inside a refilling plant; dealer's showroom; retail
outlets: and /or evlinder transporter.

Bor cases initiated sofw propio by the DOL, it shall make a final determination of whether an
LPG cylinder is injurjous, unsafe or dangerous within thirty G0) days from termination of
administrative procledings: Provided, fintler, That in the absence of such determination upon
espitation of the peflog therefor, the DOE shall thereafter release custody of the LPG cylinders to
the industryfpatticipiingin custody thereof prior to the order for recall, impoundment or prohibition
from publicbale or disthibution,

SEC 21, Probedlre for Petition for Declaration of LPG Cylinder as Injurious, Unsafe or Dangerons
Any tnteresied person may, upon payment of the appropriate filing fee prescribed by the DOR,
peution the DOE foe an order declaring an LPG cylinder injurious, dangerous or unsafe. In case the
DOE, acting on sugh petition or on its own initiative and upon due notice and hearing, determines
an LPG cylinder to'Belinjurious, dangerous or unsafe, it shall so notify the cylinder owner of such
finding and Order the recall, prohibition or seizure of the LPG cylinder.

SEC: 22. Reilly Seize, Impoundnent and Probibition of Defectie LPG Cplinders. The order for
recill, seizure, impoundment of prohibition issued by the DOE shall contain a prohibition against
the refilling, sale or distribution of the recalled or banned cylinder. The cylinder owner against whom

the order for recall, prohibition or seizure ts issued shall be required to subject the recalled, banned
or svized LPG cylid if re
on Where repair oF re-qualific:

ion processes to tender the same compliant with
appropriate P2 ion is not possible or practicable, to present proof
eat Ha

5
fe Giese against whom the order for recall, seizure or prohibition is issued may
petition forthe revdéation of the order. The DOE shall revoke the order for recall, prohibition or
seizure upog.a findiilg thar the subject LPG cylinder has been repaired or otherwise made compliant
with the required PXISgor has been replaced with a like or equivalent cylinder which conforms with
the sepeppe PN:

The eylinder owner shall not charge a consumer who avails of the remedy as provided above
afany expenses or costs that’ may be incurred ia the course of repair and re-qualification,

SEC. 23. Disposition of Recalled, Banned or Seized Cylinders. - The DOE shall formulate rules for
the disposition of recalled, banned or seized cylinders: Provided, ‘That it shall initially adopt and
caforce the rules for disposition of recalled, banned or seized cylinders established by the Dl;
Provided further, That it may amend the same when it deems necessary.

SEC. 24, Weighing Devices
(2) Calibrated afd Scaled Weighing Devices Required in Premises, - All refiners, importers,
refillers, mf dedfer§, and retail outlets shall maintain, at all times, in all their establishments or

outlets and ithin eh Miles areas accessible to the public, suitable weighing devices duly calibrated
anbually and sealed By the City or Municipal Treasurer, the DOST, or any other government agency
authorized tw officially calibrate the same. ‘The weighing devices shall accurately measure LPG
cylinders upito-one-tengs (0.1) of one kilogram

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to being placed in the gles areas and also i the presence of the customers prior to sale, to afford
the latter an oppornunify to verify the correctness of the weight of the cylinders and the LPG
contents theeeof,

SEC. 25. CylindaiSeatir
conform to the specifigations of the DOE!
concerned brand owners,

AILLPG evlinders shall be provided with scals after filling, which
That the DOR, after consultation with the
ications: Provided, finther, That the cylinder owner
and its authorized refiller s| ensuring that LPG cylinders are properly
sealed before the eylinders leave che filling or reilling plants: Prwided, final, That LPG cylinders
with tampered of broken seals shall not be sold or distributed.

() Checking off LPG Cylinder Content by Dealers, Retail Outlets and Haulers. — All
Gealers, retail outlets an@ haulers that sell direeth to consumers, shall seige the LPG cylinders prior

Cyknder seal manufaceurers shall not sell seals of LPG brand owner to any other brand
owner, unless allowed by both the brand owner stselt and the DOE. Seals are to be registered with

the DOR.
SEC. 26. = for LPG Cylinders. ~ LPG cylinders shall comply with labeling

s of the PN§, with the labeling requirement provided under this Section and as may be

‘or LPG @ylinder Collar. -

) All LPG cylinders, whether manufactured locally or
innported, shall have che

lowing embossed or stamped on the cylinder collar:

» ie met registered trade name or brand name, trademark and business name;
Por pa Jers, the name and address of the importer in the Philippines;

3 Philippine Si ad or Import Commodity Clearance certification marks, as applicable;

4) Specific standard useds

5) Date of i or re-qualification;

6) ine if

7) Cylinder waite

8) ‘Tare weight;

9) Design and test pressure; and

10) Serial number.

if

The above requirements shall form an
being crased or detached under ordinary bandli

rt of the cylinder collar, without danger of

(b) For LPG Cy!
shall bear the followings

der Body. - AI LPG cylinders, whether manufactured locally or imported,

2) A color which!
3) Tare weight; a
4) Net weight

isunguishes the brand owner of the LPG it contains;

‘The brand nate,
form an inte;
ordinary

le name or trademark of che LPG product shall be embossed and shall
body of the cylinder, without danger of being ctased or detached under

SEC. 27, Delivery Vehicles, Drivers and Atteudants. — AML trucks and other vehicles used for
transporting aad delivering LPG cylinders shall be open and the same shall be registered with the
DOF, in accordance with the. guidelines to be promulgated by the DOE, in consultation with the
industry participants and other concerned agencies. A haulers shall display on their delivery trucks
or vehicles a prominent DOE signage. Failure to register the delivery vehicle shall give rise to a
presumption that the vehicle is not duly authorized ro transport LPG

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Vehicles not registered and without the appropriate DOE signage shall be seized or
impounded hy the DOI ion of drivers and attendants for LPG delivery
‘ehicles shall be prescribed by the DOE. upon p:ior consultation with the industry patticipants and
other concerned government agencies.

uidelines for the accre

SEC. 28, Dies Sales by Hanier. ~ Subject t guidelines and requirements as may be
promulgated by the DOE, haulers who engage in dizect selling of LPG to consumers shall be treated
as dealers for purposes of this Act and shall observe the standards and requirements for dealers
under this Act

SUC. 29. LPG Cylinder Exchange, Swapping and Rehabilitation. - The DOL, in consultation with
the DTI, LPG industry participants, concerned government agencies and other stakeholders, shall
‘ormulate a program and issue the appropriate rules necessary wo govern the practice of exchanging,
swapping and rehabilitation of cylinders in the ade of LPG, including appropriate éanctions for
violation thereof.

‘This Section shall be subject to the following:

1. Cylinder Exchange, Swapping and R
principles and standards

{a) Ensuring the safety of the cylinder for the benefit of the consumer shall be the priority
concerns Provided, that any procedure in the cylin ye, swapping and rehabilitation system,
which may increase sigaificantly the retail costs of a 1.PG cylinder, shall be subject to consultations
‘with Consumer groups and industey participants by the DOE.

(b) No procedure in the eylinder exchange, and rehabilitation system shall be
permitted if it results to unfur trade practices Prat unduly benefits one industry participant over
another

(c) The eylinder exchange, swapping and rehabilitation system shall take into consideration
the following factors

i, ‘The prevailing economic conditons of the LPG industry, including but not limited
to, the supply ef LPG including the levels of import and domestic production Of LPG
adjusted for applicable foreign exchange rates, the demand for LPG including the levels of
household and bull: use, as well as the prevailing prices of LPG, among others,

ii, The number of LPG eylind ncillary equipment, classified into its usability
and cost effectiveness;

iii, ‘The developments in LPG safeyy technology and the energy sector in general;

iv. The statistics and orher information on the level of injuries from LPG. relared
incidents as well as safety compliance by cach and all industry participants;

v. Suich other fitetors that may affcct the viability of the LPG industry particularly on
ats safety and affordability.

piliation shall be governed by the following

1 exchat

swappi

2. fhe DOL. shall conduct a study that will examine the viability and practicality of the
establishment of the practice of cylinder exchange, swapping and rehabilitation between LPG
industry participants. The DOE shall issue a decision based on chis study which shall implement the
mandate stated in this $ This study shall be completed within one bundzed and eighty (180)
days from the effectivity of this Act

ts shall co

3. AILL.PG industry particips
cylinder exchange, swapping and rehabilit
are put in circulation,

pe
Jon programs to €

te with che DOE in the implementation of
sure that only duly qualified cylinders

. CHAPTER IV


QUALITY STANDARDS

30. Provonlgation of Quatity Standard - In order 10 reduce safery risks and operational
hazards, and promote the use of environmenially safe and worker-benign technologies and
processes, industry participants are hereby requised «@ comply with the quality standards established
by the DOE, for the LBG industry consistent with the PNS formulated by the DTI. The quality

standards shall ran , but not be limited to, the following:
(a) Puimary Facilities;
() ¢ Ton ig Plants and Facilities;
(C) BUlk-Loadingy Unloading and Transportation of LPG;

(W) Dealers and Retal Oudets;
(© Service Stations

The DOE, shalliformulate the specific wuidelines for mandatory compliance with the
established quali rls und enforce the apptopriate sanctions for violations thereof Provided,
That the DOE, shalli@oHult the LPG industry participants in the formulation of said standatc
Provided furthe That Rothing in this Chapter will allow licensees for refilling plants, dealers, and
retailers’ to sell ancillary equipment not recommended by the cylinder brand owner: Prarded, finaly,
That the DOE, in formulating the qualicy standards in this Act, when applicable, shall adopt the
Philippine LPG Association safety code and the applicable international safety standards for the
LPG industzy, including, bur not limited to; the Nadonal Fire Protection Association (NFPA) 58,
otherwise known as the liquefied petroleum gas code for LPG.

CHAPTERY,
PROHIBITED ACTS.

Any industry participant
nce-Cerdicate fom the DOE #3
fine of Five Thousand Pesos

a corporation, for each
miided, That the maximum fine to be
1 individual and ‘Ten Million Pesos

(P5,000.00) fot an indiv
day of operation without
imposed shall be Five Million Pesos (:
(P10,000,000.00) for a corporation.

erhicate:
100,000.00} for

32. Engaeing in Business Without Accreditation. - Any person who engages in the business
of manufacturing cylinder seals or of re-qualifying, repairing or scrapping LPG cylinders without
fiust securing "a certificate of accreditation from the DIT] as provided uader this Act, shall be
penalized with a fine of Three Thousand Pesos (P3,000.00) for an individual and Five ‘Thousand
Pesos (P5,000.00) for a corporation, for exch day of operation without a certificate of accreditation:
tthe maximum fine to be imposed shall be Five Million Pesos (P3,000,000.00) for an
en Million Pesos (P10,000,000.00) for a corporation

SEC. 33, Obstnetiih of Inspetion. - Any industry participant who refuses, prevents or obstructs
the inspection of its préfhises and records as provided under Chapter IIL of this Act shall be
penalized with a fine df Three Hundred Thousand Pesos (Php300,000.00) for an individual and Five
Hundked Thowsand Pesos (Php500,000.00) for a corporation, for each instance of violation,

SEC Hill WE Npst Standards Copii
refuses to postiits Stat impliance
sequited by thd DOE; shi be penalized with a fine

Thoustid Pesos (@hp5,000,00)

An industry participant who fails or
< required under Chapter I] of this Act an
ot exceeding Five

for each instance of violation.

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SEC. 35. Fuiligy fo Submit Reportorcal Resnirements. ~ An industry participant who fails to
submit periodic report as may be required by the DOE, within a reasonable period and in the
manner prescribed by fe DOE, shall be penalized with a fine not exceeding Five Thousand Pesos
(Php3,O00.00) for éfich instance of violat

SEC, 36, Hlegal Stone, ~ A refiner, importer, refilles, hauler, dealer, rerail outlet or bulk
consumer who stores LPG in bulk without obraining the Standards Compliance Certificate required
uncer Chapter HIT =f this Act sball, upon conviction, be penalized with a fine of not less than
Tweary ‘Thousand Pesos (Php20,000.00) bur act more than One Hundred Thousand Pesos
(Php 100,000.00}, or imprisonment of at least six (6) months but not more than ewo (2)
both, ar the discretion bf the court: Provided, ‘That the second and subsequent violations shall be
penalized with both fin@and impasonment as provided herein.

1S, OF

SEC. 37. Balhae to Comply with Prdvct Standards. ~ An 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, upon conviction, be penalized as follows:

(a) Non-compliance with DOE mandatory requixements on safety designs for refilling
plants, equipment, depots, pipeline systems and similar facilities shall be penalized with a fine of not
less than Fifty ‘Tholfgand Pesos (Php50,000.00) but noc more than One Million Pesos
(Pbpl,000,090.00} ox! if}prisonmene of at least six (6) months but nor more than two (2) years, of
both at the Yiserouch the court: Provided, That nothing in chis paragraph shall preclude the court
from ordering the clostife of the facility until such time thar the mandatory requirements have been
oet

{)) Failure to segure the required PNS Cetificate for LPG eylinders shall be penalized with a
fine of Five Thousand Pesos (Php5,000.00) for an individual or Ten Thousand Pesos (Php
10,000.00) for a corporation, for each non-compliant cylinder used and diseributed to consumers, or
imprisonment of at least six (6) months but not more than two (2) years, or both at the discretion of
ie court: Pride. Thagithe maximum fine to be imposed shall be Five Hundred ‘Thousand Pesos
(Php500,009.00) fo! apy individual and One Million. Pesos. (Phpl,000,000.00) for a corporation:
‘Pranided, further, That the second and subsequent violations shall be penalized with both fine and
imprisonment as provided herein: Prov, fn this section shall not apply unless the cylinder
is in the possession Of an illegal refiller or trader.

SEC. 38. Adilteration, ~ A refiner, importer, refilles, piped gas provider, dealer or retail outler
who mixes LPG 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, upon conviction, be penalized
with ‘a fine of Ten Thousand Pesos (P10,000.00) for an individual and Twenty ‘Thousand Pesos
corners F482 corporation, for each cylinder containing adulterated LPG, ot

imprisonmebt of at leagljsix: (6) months bur nor more than two (2) years, oF both, at the discretion of
the court: Plowided, Thatfthe second and subsequent violations shall be penalized with both fine and
imprisonment: Provided further, That the m fine tw be imposed shall be Five Hundred
Thousand Pesos (Php500,000.00) for an individual and One Million Pesos (Php 1,00,000.00)
foracorporation. — |p

SEC, 39. Undepfilling, - When the ner quantity of LPG contained in cylinders. sold,
uansferred, jdelivereg or filled by retillers is less than the cylinder content required by the
governmentiat the filling plant, the refiller shall, upon convicuon, be penalized with a fine of Five
Thousand Pesos (Php$,000.00) for an individual and Ten Thousand Pesos (Phpl0,000.00) for a
corporation for each underfilled cylinder or with imprisonment of at least six (6) months but not
more than two (2) years, or both, ar the discretion of the court: Provided, That second and subsequent
violations shaltbe penalized with both fine and imprisonment: Provided, further, That the maximum
fine to be imposed sball be Five Hundred Thousand Pesos (Php300,000.00) for an individual and

atest
een
a


Ox EeNnH

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wc

One Million Pesos (Php1,000,000.00) for a corporation. When the net quantity of LPG for sale in
cylinders sold, transferred, delivered or filled by dealers or retail ourlets is less than three tenths of
cone kilogram (0.30 Kg) or the government-required cylinder content quantity, the dealer or retail
outlet shall be penalized with the same fines menuoned eatlier in this paragraph.

A broken, tampered, absent or removed seal shall give rise to a presumption that the
cylinder is undesfilled. \ 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 zetail outlets is presumed to be
for sale.

SEC. 40, Ikea! eflting. - ‘The following shall constitute illegal refilling of LPG cylinders
under this Act

(a) Refilling of EPG eylinders by a person or entity other than the rightful owner thereof,
unless specific permissign is granted by the owner for such refilling as evidenced by a written
contract or similar instrument;

(b) Refilling of eplinder with LPG of a brand, trademark, trade name, or registered business
name other than that of the LPG brand owner indicated on the cylinder tank, otherwise called
“pute filling” or “eross- filling”

(6) Refilling of IPG cylinder without embossed .$ oF other indication of the brand ot
unde name thereof, or Bearing defaced, tampered or illegible matkings contrary to the mandatory
labeling and stamping requirements under this Act,

(@) 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 LPG Board;

(¢) Filling direetly from LPG tank wucks without the use of approved filling machines;

(0 Refilling LPG from one cylinder w another without using the prescribed equipment; (g)
Backyard refilling of cylinders other than in properly designed LPG refilling

plants;

0) Filing exlindhes with products or substances other than LPG in an effort to achieve the
correct net weight;

() Any other refilling of LPG evlinders in violation of the mandatory requirements ot
prescribed standards under this act; and
() Unauthorized loading of bulk LPG tanks in industrial accounts. It shall also be prohibited
y marketer, dale retail outlet to knowingly sel! illegally refilled cylinders.

fora.

An industry pafficipant found guilty of illegal refilling under this Section shall, upon
conviction, be penalizedwith « fine of Ten Thousand Pesos (Php10,000.00) for an individual and
Twenty ‘Thousand Pesos (Php20,000.00) for a corporation, for each illegally-tilled cylinder, or
imprisonment of at least six (6) months but not more than wo (2) years, or both, at the discretion of
the court: Provided Thatisecond and subsequent violations shall be penalized with both fine and
imprisonment: Provided, farther, That the maximum fine to be imposed shall be Five Million Pesos.
(Php$,000,000.00) for anfindividual and Ten Million Pesos (Php10,000,000.00) for a corporation

SEC. 41. Unauthorized Trading ofl PG Cylinders. Any industry participant who, without the
consent of the cylinder owner, stores empty LPG cylinders in quantities in excess of those allowed
by the DOE, through cylinder swapping and other similar industry practices, and exchanges, barters,
sells, distributes or otherwise transfers ownership and/or possession thereof to a person or entity
other than the cylinder owner and without the authority of the cylinder owner shall, upon
conviction, be penalizedgwith a fine of Three Thousand Pesos (Php3,000.00) for an individual and
Six Thousand Pesos a Hee for cach illegally stored or sold empry cylinder, or imprisonment
cf at least six (6) month but not more than ewo (2) years, ot both, at the discretion of the court
Provided, ‘That second ft Fae violations shall be penalized with both fine and imprisonment
Provided. fetter That the! masimusn fine to be amposed sball be Three Hundred ‘Thousand Pesos

i


(Php 206,000.00) for an individual and Six Hundred Thousand Pesos (Php600,U00.00) for a
corporations

ur Meh. ~ Any person who tampers, alters, oF
1s such as, bur not limited to, changing the cylinder valve,
1 the cylinder owner shall, upon conviction, be
'bp5,000.00) for an individual and Ten Thousand
Pesos (Phapiii,iG0.00) for a corporation, for each tampered or altered LPG cylinder, or imprisonment
of at least six (6) months ber not more than evo (2) years, or both, at the discretion of the court
Pruvided, That second and subsequent violations shall be penalized with both, fine and imprisonment:
Provided, junthen, That the maximum fine to be imposed shall be Five Million Pesos (Php3,000,000.00)
for an indivigeal and Tea Million Pesos (Php10,000,000.00) for a corporation

se 42, Tania’ LPG: Gilaiders ai

modifies LPG cylinder$ithrough any me:

vepainting, and re-labelig, by any person other
penalized with a fine of Five Thousand Pesos (

SHC. 43. Wega! yPossession of LPG Cylinder Seal - Avy person found in possession of LPG.
cylinder seals, inchudingjthe seals already used in the cylinders without authority from the cylinder
owner or its authorized)refiller shall, upon convicnon, be penalized with a tine of Five Thousand
Pesos (Php5,000.00) forlan individual and Ten Thousand Pesos (Phpl0,000,00) for a corporation, for
cach LPG seal found in its or his posses mprisonment of at Jeast six @) months but sor
more than ewo (2) years, or both, at the discretion of the court: Pmrided, That second and subsequent

tolations shall he penalized with both fine and isonment: Provided, fierther, That the maximum
fine iy be indp osed shalby Vive Mil A00,000.00) for an individual and ‘Pen Millis
Pesos (Phplt,000,000.00) for a corporation.

v0, OF

an Pesos

SEC. 44. Failunt to Comply with Weighing Device Requirements. ~ A refiner, importer, refilier,
dealer or refpil buthit sho fails to comply with the requirements pertaining co weighing devices
ander Chapter 11, shalf} be penalized with a fine of Ten Thousand Pesos (Phpl0,000.00) for an
individual or Twenty Thpuisand Pesos (Php20,000.00) for a corporation,

i

SEGA 48. Ovmrbading. — A hauler who k

nel transports, or permits the loading and
usansportafion of LPG cylinders in quantici cer than the rated capacity of the vehicle or in such
4 manner that endangers the life and safety of us passengers or the public, shall be penalized with a
tine of Twenty ‘Thousand Pesos (Php20,000.00) for an individual and Forty Thousand Pesos
Phps0.000.00) for a e@rporation: Prm Phat the penalties provided herein shall be without
prejuchice to its lay ler other laws for any damage or injury to person or property,

46. Importation of Used or Second-Hand LPG Cylinders.
second-haadhLPG cylinders or contamers shall, upon conviction. Be penalized with a fine of at least
Oue Hunded ‘Thousad Pesos (PRPIVOQU) or Three Thousand Pesos (PhP3,000.00) per
cylinder or container, whichever is highes, and imprisonment of at least six (6) years and one (1) day
ro twelve (12) years

Any person who imports used of

 Perons or Entities, ~ A cylinder manufacturer,
tefiner, importer, refiller, dealer or retail outlet who knowingly sells or distributes LPG or 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, shall upon conviction, be
penalized fol each stile or distribution with a fine of not less than One Hundred Thousand Pesos
(Phpl00,000.00) but not more than Five Hundred Thousand Pesos (Php500,000.00) or
imprisoament of at least six (6) months but not more than two (2) years, or both at the discretion of
the court.

SEC. 48. Piffrage of LPG. - Any person who pilfers LPG, upon conviesion, shall be penalized
silt a fine Gf Oae Million Pesos: (Php!,000 an individual and Two Million Pesos
(Php2,000,000.00) for a Eorporatian or imprison least six (6) months but not more than



46

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49
50
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52

*
two (2) ydass, at the discretion of the court: Privided, That second and subsequent
yiokanons sh: 8 be ob red with both fine and imprisonment: Provided, further, That the maximum
fine t be imposed Shallfbe Five Million Pesos (Php3,000,000.00) for an individual and ‘Ten Million
Pesos (Phpl0,000,000.00) for & corporation.

49. Suspension or Revocation of Business Lvense or Permit. ~The penalties provided herein
shall he wichour prejudice t© the suspension or revocanon of the business license of such person by
the approptiate local goyemment unit, within, the same year for which such business license was

need, | }
SEE. bo Inghsilly of Adminisratice Penal. ‘The OV: ey, in addition to or i liew of the
iustitution oft criininal action in a court of law. ampose an administrative penalty within the range

of Twenty Thousand Pesos (P20,00U.00) up w Five Hundred Thousand Pesos P500,000.00) for
‘each offense in this Chapter and such other violations of this Act.

SEG. 31, "Semke Loree” Penaity. - Any person convicted with finality of violating the
provisions of thif Ace t three (3) consecutive instances shall be perpetually disqualified from
engaging in any activiey i the LPG industry.

basis, publi in 4 nelwSpaper of general circulation, the names of industry players convicted with

Act.

2. Publi in of Persons Convicted of Vinlations of this Act, - The DOK: shall, on a quarterly
finahty of viol ONS: i

SRO) 53. jena by Juridical Enunties, -\f the violation is commited by a corporation,
isaseenn association or other juridical entity, the penalty of imprisonment shall be imposed on
te responsible reg S officers thereof. If the offender is alien, he shall be deported
insmedliately, without further proceedings, after service of sentence.

SEQ. (54. Prusweition Under Separite Lams. Prosecution under this Act shall be without
pesgike 10 any Hability for ‘violation of any provision of the Revised Penal Code, Republic Act No.
9514, otherwise kno) the "Revised Fire Code of the Philippines of 2008," Republic Act No.
5293, orherwide inode d the “Intellectual Property Code of the Philippines,” and other applicable
hows 1 nes provided?in this Chapter shall be 9 Pp ice to any other leyal claims or
damages which any injured party suffers as a result of any of the enumerated prohibited acts under

this Chapter.
Lod

“tity

CHAPTER VI
EDUCATION AND RESEARCH.

wirements for Customers and Eind-wsers. "The DOE and the DTI shall jointly
wndlerake dd iain formation dissemination actives to enhance customer awareness
among ILPG consumers ad ead-users. In addition t0 such educational programs, the DOK and/or
the 111, after consultation with the LPG industry jarticipants, may prescuibe sules and repulatious
in relation to the following:
a Hoe industeial (fr lange end-users, £ signs at storage faciliti
(b) Use’ sin inded, legally-filled and certified LPG cvlinders; and
© Inbrallaio dELPG appliances and devices approved by the DTI: Prod, ‘That such
appliances and devices shall be installed ok by qualified servicemen as provided in this Act,

SEG
Informatio:

. Public Gpformation Campaign. - ‘The DOE, in coordination with the Philippine
gency, thé’ DILG and such other appropriate government agencies, shall jointly
develop and implement 4n effective strategy for she dissemination of information 10 the public
about LPG. i ry and safety



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SEC. 57. Development Research... - The DOU, 1 coordination with che DOST and the D1,
shall conduct study and research for the purpose of developing more efficient methods of providing
safe, clean and hazard-ftee LPG to consumers.

CHAPTER VIL
FINAL PROVISIONS
‘

SEC. 58, Inphoenting Rules and Regulations. Unless otherwise provided in this Act, the DOE,
in consulrgion with the DTI, other appropriate agencies, the LPG industry participants, and
consumer Troup, shall be the: lead agency with the responsibility co formulate and issue the
necessary implementing, rules and regulations within one bundred eighty (180) days from the
effectivity of this Act.

{
SEC. 59, a Phase, In order t
and supervisory mechahisms provided herein,

wide a smooth implementation of the monitoring
the industre participants shall be given @ grace period
of one hundred eighty (180) days from the effectivity of this Act, within which to comply with the
provisions hereof: Prvaided, ‘Vhat during the tansinon period, the industry participants shall continue
to be bourid and made liable under the provisions of existing laws, rules and regulanions not
othenwisd repealed by this Act. Industry participants already legally engaged in business upon the
effectivity of this Act and who are required to secure pliance Certificate prior to the
renewal of their business licenses as provided i Section 15 of this Act, shall not be required to
obtain a Stahidards C si nce Certificate for the duration of the grace period.

Assistance to Public Offa's, - Public officials or othet authotized persons acting
of the DOE, the DTI, the DULG and other concerned
government agencies shall he provided with fice legal assistance, liability insueance and other forms
Of protection and indemnification for all costs and expenses reasonably incurred by such persons, it
connection with any civil or criminal action, swt or proceeding to which they may be or have been
made a pasty by reas of the performance of their functions or duties, unless they are finally

<

or

Standards Cot

» 60, Lega

adjudgediinksuch actioiflor proceeding to be lible for gross negligence or misconduct or grave abuse
of disctet

SEC. 61, Separdbility Clause, - Uf for any reason, any chapter, section or provision of this Act
shull be declared uncosistitutional, illegal or invalid, such parts nor affected thereby shall remain in
full force and effect.

SEG. 62. Replaling Clause. - All laws, decrees, executive orders, proclamations and
adminis cegulaions, or pats chercof inconsistent herewith are hereby repealed or moxie
accordingly

SEC. 63. Lyeetinity Chae ~ Ubis Xe
publeation fa the “y Gazette or in at le:

ake effect after fifteen (15) days after ats
spapers of general circulation.

Approved,

2 coca



FIFTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES)
First Regular Session )

HOUSE OF REPRESENTATIVES
House Bill No. 3976

Introduced by Honorables Arnel U. Ty, Catalina G. Leonen-Pizarro, Sherwin
N. Tugna, Salvador P. Cabaluna III, Sharon S. Garin, Michael Angelo C
Rivera, Pastor M. Alcover, Jr., Rodel M. Batocabe, Christopher S. Co, Alfredo
A. Garbin, Jr., Randolph S. Ting, Lord Allan Jay Q. Velasco, Ponciano D.
Payuyo, Mark Aeron H. Sambar, Rodante D. Marcoleta, Eulogio R.
Magsaysay, Raymond D. Mendoza, Dakila_Carlo E. Cua and Winston t.
Castelo

EXPLANATORY NOTE

This bill seeks to establish the monitoring and supervisory framework
for the Liquefied Petroleum Gas (LPG) Industry in order to strengthen and
enhance existing standard and mechanism 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
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 of national product quality 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.

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


SALVADOR P. CABALUNA III

SHARON S. GARIN MI L ANGELO C. RIVERA

i
CHRISTOPHER S. CO
\

RANDOLI |. TING

PONCIANO D. PAYUYO

RAYMOND D. MENDOZA

IN T. CASTELO


ARNEL U. TY

SHERWIN N. TUGNA

SHARON & GARIN

PASTOR M. ALCOVER, JR.

CHRISTOPHER S. CO

RANDOLPH S. TING

PONCIANO D. PAYUYO

RODANTE D. MARCOLETA

RAYMOND D. MENDOZA

WINSTON T. CASTELO

CATALINA G. LEONEN-PIZARRO

SALVADOR P. CABALUNA III

MICHAEL ANGELO C, RIVERA

RODEL M. BATOCABE

ALFREDO GARBIN, JR.

LORD ALLAN JAY Q. VELASCO

ER‘ |. SAMBAR

EULOGIO R. MAGSAYSAY

DAKILA CARLO E. CUA

on
MA. prurepus YTS mAGhAd CA


Republic of the Philippines
HOUSE OF REPRESNTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

House Bill No.__ 3976

Introduced by Honorables Arnel U. Ty, Catalina G. Leonen-Pizarro, Sherwin
N. Tugna, Salvador P. Cabaluna III, Sharon S. Garin, Michael Angelo C.
Rivera, Pastor M. Alcover, Jr., Rodel M. Batocabe, Christopher S. Co, Alfredo
A. Garbin, Jr., Randolph S. Ting, Lord Allan Jay Q. Velasco, Ponciano D.
Payuyo, Mark Aeron H. Sambar, Rodante D. Marcoleta, Eulogio R.
Magsaysay, Raymond D. Mendoza, Dakila Carlo E. Cua and Winston t.
Castelo

AN ACT
ESTABLISHING THE REGULATORY FRAMEWORK FOR CONDUCT OF
BUSINESS AND THE SAFE OPERATIONS OF THE LIQUEFIED PETROLEUM
GAS (LPG) INDUSTRY, DEFINE AND PENALIZE CERTAIN ACTS.

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

CHAPTER I
GENERAL PROVISIONS

SEC.1. Short Title. - This Act shall be known as the “LPG
Business Industry Regulation and Safety Act of 2010.”

SEC. 2. Declaration of Policy. — It shall be the policy of the State to
establish a regulatory framework for the refining, importation, (LPG cylinder
exchange and swapping), refilling, requalification, distribution, and
marketing of the Liquefied Petroleum Gas (hereinafter referred to as “LPG”)
industry to promote the general welfare, encourage the establishment of
standards of conduct and codes of practice for LPG businesses, and to
ultimately address the quality and safety concerns under a deregulated
downstream oil industry structure. Consequently the State shall uphold the
right of consumers to freely choose the LPG brand they want to purchase,


rationalize all applicable laws and executive issuances on the LPG industry
to strengthen and enhance existing mechanisms against hazards to health
and safety, and deceptive and unconscionable trade and practices within the
industry. To this end, the State shall undertake the implementation of this
Act primarily through the Department of Energy, in coordination with the
Department of Trade and Industry, the Department of Justice, the
Department of Interior and Local Government, and other appropriate
government agencies and instrumentalities.

SEC. 3. Construction and Interpretation Clause. ~ Any doubts 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. 4. Definition of Terms. ~ For the purposes of this Act, the
following terms are defined herein below:

(a) “DENR’ shall refer to the Department of Environment and Natural
Resources;

(b) “DILG” shall refer to the Department of Interior and Local
Government

(c) “DOE” shall refer to the Department of Energy
(d) “DOST” shall refer to the Department of Science and Technology
(c) “DTI” shall refer to the Department of Trade and Industry;

(f) “LGU” and “LGUs” shall refer to a local government unit or local
government units, respectively;

(g) “PNP” shall refer to the Philippine National Police;
(h) “SEC” shall refer to the Securities and Exchange Commission;

(i) “Accreditation” shall refer to the formal recognition given by the
DTI that a re-qualifier of LPG cylinders has complied with PNS
17025:2000, “General Requirements for the Competence of Testing
and Calibration Laboratories,” and PNS 03:2000, “Steel Cylinders
for Liquefied Petroleum Gas,” Part 2 - “Method of Requalification;”

G

“Ancillary Equipment” shall refer to such equipment, parts, and
other devices necessary and indispensable for the safe and proper
operation of an LPG system such as, but not limited to, valves,
hoses, and regulators;


(k) “Brand Owner” shall refer to a person, natural or judicial, owning
the brand name, logo, color, mark, and/or distinction as registered
with the DTI;

() “Bulk Consumer” shall refer to any person or entity 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 DOE;

(m) “Bulk Loader” shall refer to any person or entity, which engages
in transportation and carriage of LPG in large quantities in barges,
rail or road tankers, bullet trucks and similar transportation
facilities;

(n) “Bulk Supplier” shall refer to any person who engages in the sale or
distribution of LPG in such large quantities;

(0) “Certification” shall refer to the written assurance given by DTI that
the LPG cylinder has complied with PNS 03:2000, “Steel Cylinders
for Liquefied Petroleum Gas”, Part 1 - “ Specification” and Part 3 ~
“Requirement for Repair,”

(p) “Consumer” shall refer to any person who purchases LPG for one’s
own consumption;

(q) “Cross Filling” shall refer to the filling of cylinders by a person
other than by the brand owner;

(r) “Cylinder” or “LPG Cylinder” shall refer to any portable pressure-
vessel or container for LPG, designed for the transportation and
storage of LPG;

(s) “Cylinder Industry Participants” shall refer to persons or entities
engaged in activities or businesses related to the manufacture,
importation, transportation, sale and distribution of LPG cylinders
and ancillary equipment, including but not limited to, cylinder and
ancillary equipment manufacturers and importers, re-qualifiers,
repairers, scrapping center, cylinder seal manufacturers and such
other;

(

“Cylinder Owner” shall refer 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 cylinder in the
manner prescribed by the DTI and the DOE;

(u) “Cylinder Exchange” shall refer to the industry practice whereby a
consumer who possesses an empty LPG cylinder may use the same
3


to purchase a different brand of filled LPG cylinder or bring such
empty LPG cylinder to a refiller different from the owner of the
brand appearing in the LPG cylinder.

(v) “Cylinder Swapping” shall refer to the industry practice of
exchanging LPG cylinders among industry players;

(w) “Defective Cylinder” shall refer to damaged, unsafe and dilapidated
cylinders due to corrosion or pitting, dents, cuts, gouges, digs,
leaks and other similar defects that render the cylinder unsafe for
distribution in accordance with the guidelines set by the DTI, thus
creating a substantial risk of injury to the public;

(x) “Dealer” shall refer to any person involved in the sale or trading of
LPG in cylinders to consumers and/or retail outlets;

(y) “Hauler” shall refer to any person involved in the distribution and
delivery of LPG cylinders from one place to another, whether
engaged in such activity for purposes of directly selling to
consumers or otherwise;

(2 “Importer” shall refer to any person engaged in the importation of
LPG whether for processing, sale or own use;

(aa) “Industry Participants” shall refer to persons or entities engaged
in activities or businesses related to the manufacture, importation,
transportation, distribution or sale of LPG, including, among
others, Cylinder Industry Participants and LPG Industry
Participants as defined in this Act;

(bb) “LPG” shall refer to liquefied petroleum gas, which consists of
commercial propane gas, commercial butane gas or mixture of the
two gases, with properties conforming to the standards set forth in
the PNS 22;

(cc) “LPG Industry Participants” shall refer to persons or entities
engaged in activities or businesses related to the manufacture,
importation, transportation, sale and distribution of LPG, including
but not limited to LPG refiners, LPG importers, re-fillers; piped LPG
providers, haulers, dealers, service stations, retail outlets and seal
manufacturers;

(dd) “Marketer” shall refer to any person, whether natural or judicial,
engaged in the sale of LPG, whether in bulk or retail;


(ce) “Petroleum products” shall refer to the products formed in the
course of refining crude petroleum through distillation, cracking,
solvent refining and chemical treatment coming out as primary
stocks from the refinery such as but not limited to LPG, naphtha,
gasoline, solvent, kerosene, aviation fuels, oils, waxes and
petrolatum, asphalts, bitumen, coke and refinery sludge, or such
refinery petroleum fractions which have not undergone any process
or treatment as to produce separate chemically-defined compounds
in a pure or commercially pure state and to which various
substances may have been added to render them suitable for
particular uses, provided that the resultant product contains not
less than fifty percent (50%) by weight of such petroleum products;

(f “Philippine National Standards” or “PNS” shall refer to the standard
promulgated by the Bureau of Product Standard (BPS) of the DTI
relating to product specifications, test methods, terminologies and
standardization procedures, guidelines or practices;

(ge) “Piped LPG Provider” shall refer to any person engaged in the
business of supplying or distributing LPG to consumers through a
pipeline system, including operators of central storage compounds
for piped LPG or reticulated system facilities;

(hh) “Pipeline System” shall refer to a network of pipes or similar
conduit use for the conveyance of LPG from the piped LPG provider
to consumers;

(ii) “Primary Storage Facilities” shall refer to the plant, depot,
equipment and other attendant facilities, such as underground
caverns, refrigerated tanks, and pressurized steel tanks, used for
storage of LPG;

(i) “Qualified LPG Serviceman” shall refer to an individual who has
been trained, qualified and certified by the DOE 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;

(kk) “Refiller” shall refer to (1) a service provider authorized by a
cylinder owner to refill cylinders on the latter’s behalf, or (2) any
person or entity who refills LPG into one’s own cylinders;


(i) “Refilling Plant” shall refer to any installation that is used for
refilling LPG into cylinders and has LPG bulk storage and refilling
facilities thereof;

(mm) ‘Refiner” shall refer to any person who refines LPG through
distillation, conversion and treatment of crude oil and other
naturally occurring petroleum hydrocarbons;

(nn) “Re-qualification” shall refer to the method or procedure by
which a cylinder is subjected to inspection and reevaluation by DTI
in accordance with the specifications set forth in the PNS 03-2000,
“ Steel Cylinders for Liquefied Petroleum Gas”, Part 2- “ Method of
Requalification to determine its acceptability for continuous use
and distribution and subsequent repair or scrappage, where
appropriate;”

(00) “Re-qualifier” shall refer to any person duly accredited by the
DTI pursuant to this Act to engage in the business of re-qualifying
LPG cylinders;

(pp) “Repair” shall refer to the removal 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 and
distribution;

(qq) “Repairer” shall refer to any person or entity duly certified by
the DTI to engage in the business of repairing LPG cylinders;

(rr)‘Retail Outlet” shall refer to any entity that sells LPG cylinders
directly to a consumer in quantities as may be determined by the
DOE;

(ss) “Reticulated System” shall refer 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;

(tt) “Scrappage” shall refer to the destruction of defective LPG cylinders
declared by a re-qualifier of the DTI to be unfit for use;

(uu) “Scrapping Center” shall refer to any person or entity engaged in
the business of disposing defective LPG cylinders;

(vv) “Seal” shall refer to the protective cover placed on the valve of
an LPG cylinder;
6


(ww) “Service Station” shall refer to a retail establishment engaged in
the business of selling LPG in cylinders as a retail outlet and in
distributing and dispensing of LPG to consumers for automotive
use. It shall be deemed a dealer or retail for purposes of this Act;
and

(x) “Tare weight” shall refer 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. - Unless expressly stated in this Act that a
particular function shall be the responsibility of another government agency,
the DOE shall be the primary government agency responsible for the
implementation and enforcement of this Act. The DOE shall supervise and
monitor the LPG industry and its participants to ensure compliance with
national product quality, environmental and worker safety, and consumer
welfare standards.

SEC. 6. Additional Powers and Functions of the DOE Secretary. —
In connection with the enforcement of this Act and in addition to his/her
powers and functions under existing laws, the DOE Secretary shall have the
following powers and functions:

(a) Administer and supervise the enforcement and implementation of
this Act, including the promulgation of Implementing Rules and
Regulations, and issuance, from time to time, of other regulations,
orders or circulars necessary to implement this Act;

(b) Formulate and implement policies, programs and regulations on
the LPG industry, including the importation, exportation,
stockpiling, storage, shipping, transportation, refining, processing,
marketing and distribution of LPG, whether distributed in
cylinders, through pipelines or other means, to ensure that product
quality, environmental and worker safety, and consumer welfare
standards are met;

(c) Implement the LPG cylinder Exchange, Swapping and
Rehabilitation Program;


(d) Inspect and evaluate LPG and LPG cylinders in circulation in
coordination with the Department of Trade and Industry, at any
time from and after its purchase by a refiner, marketer, or refiller,
and while it is in circulation or intended for distribution to the
public, for purposes of determining conformity to established
quality and safety standards for LPG cylinders developed and
established by the Bureau of Product Standards (BPS);

(¢) Establish safety standards for refilling plants, depots, storage,
areas, transportation and other facilities of LPG industry players
and inspect and evaluate refilling plants, depots, storage areas,
transportation and other facilities or business premises of LPG
Industry Participants to ensure compliance to safety standards;

() Direct LPG brand owners, re-fillers, dealers and retail outlets to
periodically submit cylinders for re-qualifications, and to secure
proper proof of compliance therewith in accordance with the
requirements of DTI;

(g) Investigate, motu propio or upon report of any person, possible
infractions of this Act by participants, and initiate the necessary
actions warranted under the circumstances, the filing of charges
with the proper court or government agency, and the enforcement
of administrative sanctions as provided under this Act;

(h) Recommend to the concerned LGUs the suspension or revocation
of the business permits or licenses of LPG industry participants
who violate the provisions of this Act.

(

Impose and collect administrative fines for violation of this Code, as
well as fees or similar charges for its services, and collection of
administrative fines for violations of this Act;

6

Create and maintain a central database of industry participants,
and inventory of existing and projected LPG supply levels in the
industry, which shall be updated monthly through its own
initiative and through reports of LPG industry participants;

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


() Establish and develop research and training programs to develop
new uses for LPG, promote improved and innovative methods and
technologies for safe and efficient production, storage, handling or
use of LPG, and to foster public awareness thereof;

(m) Consult and coordinate, on a regular basis, with LPG industry
participants, associations and consumers in furtherance of the
objective of this Act;

(n) Coordinate with other government agencies, bodies and
instrumentalities to ensure the effective implementation of this Act,
which shall include the power to deputize other agencies to assist
the DOE in implementing its mandate under this Act.

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

(p) Investigate, prosecute, and impose penalties for dumping activities
or unauthorized filling of bulk tanks installed in industrial LPG
consumers by bulk suppliers other than the owner of the tanks.

SEC. 7. Powers and Functions of DTI. - Under this Act, 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 re-
fillers, 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 PNS and their
fitness for public sale and distribution;

(a) Grant accreditation and certification of conformity to PNS to re-
qualifiers, repairers, scrapping centers, cylinder and_ seal
manufacturers and other independent, competent, private persons
and entities that provide products and services to ensure
compliance by industry participants with the PNS for LPG cylinders
and ancillary equipment, in accordance with Chapter III of this Act,
and to revoke the same; and

(e) Extend all necessary assistance to the DOE in the implementation
of measures in furtherance of the objectives of this Act.
9


SEC. 8. Powers and Functions of DILG. - Under this Act, the DILG
shall have the following powers and functions:

(a) Coordinate with LGUs and the PNP for the orderly and effective
implementation of this Act, and of the orders, rules, and
regulations and issuances pursuant thereto, including
recommendations for the suspension or revocation of business
permits or licenses of LPG industry participants found to be in
violation of this Act;

(b) Coordinate with the DOE and the DTI in the dissemination of
information relevant to the implementation of this Act, particularly
to the LGUs and the PNP; and

(c) Extend all necessary assistance to the DOE with respect to the
enforcement of measures in furtherance of this Act.

SEC. 9. Power and Functions of LGU’s. - LGU’s pursuant to their
powers provided by law especially under Republic Act No. 7160, otherwise
known as the Local Government Code, or, upon recommendation of the
DOE, and upon due notice and hearing, shall have the power to suspend or
revoke the business permit or license of any LPG industry participants
within their respective areas of jurisdiction for violation of the provisions of
this Act:

SEC. 10. Technical Working Group. - The DOE shall be authorized
to convene a Technical Working Group to assist the DOE in the thorough
review and evaluation of the rules and regulations, policies, safety and PNS
affecting the LPG industry. The Technical Working Group shall be composed
of not less than ten (10) nor more than fifteen (15) representatives of the
pertinent implementing government agencies and the private sector
particularly LPG industry participants and consumer groups. Private sector
representation in the Technical Working Group shall be equitably
distributed among LPG industry participants.

CHAPTER III
MONITORING AND ENFORCEMENT MECHANISMS

SEC. 11. Ownership of LPG Cylinders. - The 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 cylinder,
and regardless of whether or not such cylinder is or continues to be properly

10


marked, stamped or identified to contain its LPG brand, or whether or not
such cylinder is in compliance with or continues to comply with any other
product or quality standard prescribed under law or by the DTI pursuant to
this Act, unless otherwise there is any unequivocal proof or indication that
such cylinder was sold, alienated, or otherwise disposed of by the refiner or
importer to an unrelated third party under written instrument.

The brand owner through its authorized dealer or outlet, shall refund
the amount of the deposit of a cylinder when the consumer returns the
cylinder with or without the deposit slip or receipt. If the receipt is available,
the cost shall be that appearing in the receipt. If the receipt is unavailable, it
shall be at such price fixed by the DOE. For this purpose, the DOE is
mandated to issue a price list within ninety (90) days from the effectivity of
this Act and to update the same after every 3 years. Any authorized dealer
or outlet that refuses to refund the amount of deposit shall be dealt with
administratively.

The brand owner shall have the obligation to ensure that its cylinder
comply with all 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 brand owner regarding any lost, stolen
or missing LPG cylinders shall relieve the cylinder owner of the obligation to
ensure the quality and safety of such LPG cylinder.

SEC. 12. Standard Compliance Certificate. —

a) Requirement Prior to Engaging in Business - Any person or
entity intending to engage in business involving LPG, LPG cylinders or
ancillary equipment or in any activity that shall render it an industry
participant as defined in this Act shall secure its Standard Compliance
Certificate from the DOE prior to commencement of commercial operations
and annually thereafter. For those subject to Section 7 (b), (c), and (d) which
requires an accreditation or certificate of conformity to PNS issued by the
DTI, submission of such accreditation or certificate of conformity shall be a
requirement prior to the issuance of a Standard Compliance Certificate by
the DOE.

For purposes of this Act, the Standard Compliance Certificate shall
certify that such person or entity has complied with the safety rules and
regulations prescribed by the DOE and other pertinent government
agencies: Provided, That such other endorsements by other government
agencies applicable to the particular classification of the industry
participant as defined and stated in this Act shall have been fully complied

1


with: Provided further, That a brand owner shall be responsible for the
following:

1) Proper manufacture, maintenance, and re-qualification of all its
cylinders prior to the release thereof to the public, in
accordance with this Act;

2) Proper filling of cylinders;

3) Assurance that LPG is readily available at his refilling plant/s
for refilling into his own cylinders; and

4) Refilling of his own cylinders, unless authorized by another
brand owner.

No industry participant shall engage in business without first having
duly secured a Standard Compliance Certificate. Any industry participant
that subsequently engages in an activity or business involving LPG or LPG
cylinders outside of the scope of its Standard Compliance Certificate shall
duly notify the DOE and secure the proper Standards Compliance Certificate
from the DOE for the said new activity or business, where deemed necessary
by the DOE.

b) Persons or Entities Already Engaged in LPG Business ~ Subject
to the provisions of Section 23 of this Act, any industry participant already
legally in business upon effectivity of this Act shall obtain a Standards
Compliance Certificate prior to the renewal of its business license and
annually thereafter, in accordance with the rules, regulations and guidelines
issued by the DOE.

c) Bulk Consumers - A bulk consumer shall be required to secure
a Standard Compliance Certificate from the DOE prior to its storage of LPG,
and annually thereafter prior to its renewal of business permit: Provided,
That if the bulk consumer has secured a similar certificate from the Bureau
of Fire Protection (BFP), such certificate shall be deemed substantive
compliance under this Act.

d) Renewal and Posting of Standard Compliance Certificate - The
Standard Compliance Certificate shall be renewed annually and shall be
prominently posted or displayed in a public, accessible and conspicuous
area within the business premises of the industry participant.

SEC. 13. Requirement for Business Permit. - The Standard
Compliance Certificate provided under the preceding Section of this Act
shall be a mandatory requirement for the grant or renewal of any local

12


government license or permit to engage in business involving LPG, LPG
cylinders, or ancillary equipment, regardless of whether such products or
activities constitute the entire or a portion of the business for which a
business license is sought by the applicant.

SEC. 14, 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 prior to the commencement of its operations and
annually thereafter.

Any person already engaged in the business of re-qualification, repair,
scrappage of cylinder and seal manufacturing upon the effectivity of this Act
shall apply for a Certificate of Accreditation from the DTI prior to the
renewal of its business permit.

SEC. 15. Monitoring and Inspection. - The DOE shall monitor the
refining, importation and distribution of LPG and conduct annual
inspections of refinery, storage, hauling, transportation, refilling, or
installation facilities and equipment to ensure that clean, environmentally-
safe and worker-benign technologies are applied, and to ensure conformity
with quality and safety standards and other mandatory requirements under
this Act. The DTI shall monitor the facilities and equipment of LPG cylinder
industry participants.

SEC. 16. Declaration of LPG Cylinder as Injurious, Unsafe or
Dangerous. - When the DOE and DTI jointly find that an LPG cylinder is
defective, unsafe or dangerous and hence, may cause possible injuries, it
shall, after due notice and hearing, issue the appropriate order for its
immediate confiscation, recall, seizure, impoundment or prohibition from
public sale or distribution, in which case the 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 cylinders.

SEC. 17. Weighing Devices. -

(a) Calibrated and Scaled Weighing Devices Required in Premises.-
All refiners, importers, re-fillers, hauler, dealers and retail outlets shall
maintain, at all times, in all their establishments or outlets and within the
sales areas accessible to the public, suitable weighing devices duly
calibrated annually and sealed by the City or Municipal Treasurer, the

13


DOST, or any other government agency authorized to officially calibrate the
same. The weighing devices shall accurately measure LPG cylinders up to
one-tenth (0.1) of one kilogram.

(b) Checking of LPG Cylinder Content by Dealers, Retail Outlets
and Haulers. - All dealers, retail outlets and haulers that sell directly to
consumer shall weigh the LPG cylinders prior to being placed in the sales
areas and also in the presence of the customers prior to sale, to afford the
latter an opportunity to verify the correctness of the weight of the cylinders
and the LPG contents thereof.

SEC. 18. Cylinder Sealing. - All LPG cylinders shall be provided with
seals after filling, which conform to the specifications of the DOE: Provided,
That the DOB, after consultation with the concerned brand owners, shall
establish such specifications: Provided, further, That the cylinder owner and
its authorized re-filler shall be jointly responsible for ensuring that LPG
cylinders are properly sealed before the cylinders leave the filling or refilling
plants: Provided, finally, That LPG cylinders with tampered or broken seals
shall not be sold or distributed.

Cylinder seal manufacturers shall not sell seals of a LPG brand Owner
to any brand owner, unless allowed by both the brand owner itself and the
DOE. Seals are to be registered with the DOE.

SEC. 19. Labeling Requirements for LPG Cylinders. ~ LPG cylinders
shall comply with labeling requirements provided under this Section.

a) For LPG Cylinder Collar. - All LPG cylinders, whether imported
or manufactured locally, shall have, among others, the following
information stamped on the cylinder collar:

1) The manufacturer’s registered trade name or brand
name, trademark and business name;

2) For imported brand new cylinders, the name and
address of the importer in the Philippines;

3) Product Standard (PS) or Import Commodity Clearance
Certification (ICC) marks, as applicable;

4) Specific standard used;
5) Date of testing or requalification;

6) Thickness of plate;

14


7) Cylinder water capacity;
8) Tare weight;

9) Design and test pressure; and
10) Serial number.

‘The above requirements shall form part of the cylinder collar, without
danger of being erased or detached under ordinary handling of the cylinder.

b) For LPG Cylinder Body. - All LPG cylinders, whether
manufactured locally or imported, shall bear the following
information on the shoulder of the cylinder:

1) The registered brand name, trade name or trademark of
the LPG product;

2) Tare weight; and
3) Net weight.

The brand name, trade name or trademark of the LPG product shall
be embossed on the shoulder of the cylinder and shall form an integral part
of the body of the cylinder, without danger of being erased or detached
under ordinary handling of the cylinder.

All cylinders shall be painted with color, registered with the DOE,
which distinguishes the brand owner of the LPG it contains.

SEC. 20. Direct Sales by Haulers. - Subject to guidelines and
requirements as may be promulgated by the DOE, haulers who engage in
direct selling of LPG to consumers shall be treated as dealers for purposes of
this Act and shall observe the standards and requirements for dealers under
this Act.

SEC. 21. LPG Cylinder Exchange, Swapping and Rehabilitation. -
Immediately upon the effectiviy of this Act, the Department of Energy shall
organize all industry participants to form and become part of the Alliance
System in the LPG industry for the implementation of the LPG Cylinder
Exchange, Swapping and Rehabilitation Program. LPG refiners, importers,
bulk suppliers, bulk consumers and re-fillers shall be classified into either a
mother or a daughter entity and form alliances to which every LPG dealer
and retail outlet in the LPG industry shall enter into a contract of affiliation.
‘Thereafter, all industry participants shall submit to the DOE particulars of
affiliation and/or proof of compliance in the formation of alliances.

15


It is mandatory upon all LPG industry players to participate in the

LPG cylinder Exchange, Swapping and Rehabilitation Program of the
government. Deliberate refusal to participate in this program shall be dealt
with administratively.

The Oil Industry Management Bureau (OIMB) of the Department of

Energy is in-charge of the implementation of the LPG Cylinder Exchange,
Swapping and Rehabilitation Program and shall perform the following
functions:

1

2
3)
4
5)
6

7)

)

)

8)

Get from the Bureau of Product Standards (BPS) information re:
cylinder service providers;

Gather and consolidate information on the alliance;
Appoint exchange centers;
Promulgate issuances and operationalize the program;
Provide list of participants;

Establish “Committee”, “Sub-committee, and “Cylinder Exchange Task
Force”

Ensure proper training of Task Force before the start of program; and
Organize and provide list of information/complain centers.

The Committee established is composed of representatives from LPG

and LPG cylinder industries, DOE-OIMB, DTI-BPS, DILG-CIDG/BFS/BLG,
DOJ-NBI/SPO, DOF-BOC and it shall perform the following functions:

1
2)

)
)

3)

4
5)
6)

7

Request assistance fund, when necessary;

Finalize implementation scheme and schedule, which will include the
area and duration, collectors and exchange centers;

Determine special marking on the cylinder for the program;
Finalize and execute IEC Plan and report card;

Organize area for sub-committee;

Monitor and report on the progress of the project; and

Assess overall project implementation.

16


The Sub-committee established is composed of local representatives
from the same entities as the committees, as well as the LGUs and it shall
perform the following functions:

1) Monitor and investigate implementation of the LPG Cylinder
Exchange, Swapping and Rehabilitation Program, including problems
encountered;

2) Assess project implementation for outcome and benefits; and

3) Submit to the Committee a quarterly progress report of the project for
area covered, to include ~— problems and _ possible
solutions /recommendations.

The LPG Cylinder Exchange Enforcement Task Force formed is
composed of police and NBI agents, under the direct supervision of the DOE
Director of the OIMB/Field Offices and it shall perform the following
functions:

1) Monitor and investigate the refilling plants (re: alliance scheme),
exchange centers, and cylinder manufacturing plants;

2

Monitor disposition of exchanged cylinders, especially those for
scrappage to ensure these are not put back in circulation; and

3) Confiscate non-compliant (sub-standard) cylinders after exchange
period.

CHAPTER IV
PROHIBITED ACTS

SEC. 22. Engaging in Business without Standard Compliance
Certificate. - Any industry participant who engages in business without
securing a Standard Compliance Certificate from the DOE as required under
Chapter III of this Act shall be penalized with a fine of One Thousand Pesos
(Php1,000.00) for an individual and Two Thousand Pesos (Php2,000.00) for
a corporation, for each day of operation without a certificate of accreditation:
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 corporation.

SEC. 23. Engaging in Business without Accreditation. - Any person
who engages in the business of manufacturing cylinder seals or of re-
qualifying, repairing or scrapping LPG cylinders without first securing a

a7


certificate of accreditation from the DTI as provided under this Act, shall be
penalized with a fine of One Thousand pesos (Php1,000.00) for an individual
and Two Thousand Pesos (Php2,000.00) for a corporation, for each day of
operation without a certificate of accreditation: 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 corporation.

SEC. 24. Obstruction of Inspection. - Any industry participant who
refuses, prevents or obstructs the inspection of its premises and as provided
under Chapter III of this Act shall be penalized with a fine of Twenty
‘Thousand Pesos (Php20,000.00) for an individual and Fifty Thousand Pesos
(Php50,000.00) for a corporation, for each instance of violation.

SEC. 25. Failure to Submit Reportorial Requirements. - An
industry participant who fails to submit periodic reports as may be required
by the DOE, within a reasonable period and in the manner prescribed by the
DOE, shall be penalized with a fine not exceeding Five Thousand Pesos
(Php5,000.00) for each instances of violation.

SEC. 26, Illegal Storage. - A refiner, importer, re-filler, hauler, dealer,
retail outlet or bulk consumer who stores LPG in bulk without obtaining the
standards Compliance Certificate required under Chapter III of this Act
shall, upon conviction, be penalized with a fine of not less than Ten
Thousand Pesos (Php10,000.00) but not more than One Hundred Thousand
Pesos (Php100,000.00), 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 the second and subsequent violations shall be penalized with both fine
and imprisonment as provided herein.

SEC. 27. Adulteration. - A refiner, importer, refiller, piped gas
provider, dealer or retail outlet who mixes LPG with another finished or
unfinished petroleum product or stock or in the failure of the LPG to meet
the required product specifications of the DOE, shall upon conviction be
penalized with a fine of Two Thousand Pesos (Php2,000.00) for an individual
and Five Thousand Pesos (Php5,000.00) for a corporation, for each cylinder
containing adulterated LPG, 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 the second and 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 (Php500,000.00) for an individual
and One Million Pesos (Php1,000,000.00) for a corporation.

SEC. 28. Underfilling. - When the net quantity of LPG contained in
cylinders sold, transferred, delivered or filled by refillers is less than the
18


cylinder content required by the government at the filling plant, the refiller
shall, upon conviction, be penalized with a fine of One Thousand Pesos
(Php 1,000.00) for an individual and Two Thousand Pesos (Php2,000.00) for
a corporation for each underfilled cylinder or with imprisonment of at least
six months but not more than two (2) years or with both fine and
imprisonment at the discretion of the court: Provided that the second and
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 (Php500,000.00) for an individual and One Million
Pesos (Php1,000,000.00) for a corporation. When the net quantity of LPG for
sale in cylinders sold, transferred, delivered or filled by dealers or retail
outlets is less than three tenths of one kilogram (0.30 kg.) or the
government-required cylinder content, quantity, the dealer or retail outlet
shall be penalized with the same fines mentioned earlier in this paragraph.

A broken, tampered, absent or removed seal shall give rise to a
presumption that the cylinder is underfilled. A 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 is presumed to be for
sale.

SEC. 29. Illegal Refilling. - The following shall constitute illegal
refilling of LPG cylinders under this Act:

(a) Refilling of LPG cylinders by a person or entity other than the
rightful owner thereof, unless specific permission is granted by the
owner for such refilling as evidence by a written contract or similar
instrument;

(b) 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) Backyard refilling of cylinders other than in properly designed LPG
refilling plants.

(d) Filling cylinders with products or substance other than LPG in an
effort to achieve the correct weight;

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

It shall be prohibited for any marketer, dealer or retail outlet to
knowingly sell illegal refilled cylinders.

19


‘An industry participant found guilty of illegal refilling under this
Section shall, upon conviction, be penalized with a fine of One Thousand
Pesos (Php1,000.00) for an individual and Two Thousand Pesos
(Php2,000.00) for a corporation, for each illegally filled 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 second subsequent
violation shall be penalized with both fine and imprisonment: Provided
Further, 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 corporation.

SEC. 30. 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 or 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, upon conviction, be penalized with a fine of at least One Hundred
Thousand Pesos (Php100,00.00) but not more than One Million Pesos
(Php1,000,000.00) and imprisonment of at least six (6) months but not more
than two (2) years.

For purposes of this Act, it shall be considered as prima facie evidence
of hoarding when an LPG participant has stocks of LPG products fifty
percent (50%) higher than his usual inventory and unreasonably limits,
refuses, or fails to sell the same to the general public at the time of discovery
of the stocks. The determination of an LPG participant’s usual inventory
shall be reckoned from the third month immediately preceding the discovery
of the stocks in case the LPG participant has been engaged in the business
for at least three (3) months; otherwise, it shall be reckoned from the time
he started his business.

SEC. 31. Tampering of LPG Cylinders and Similar Acts. - Any
person who tampers, alters, or modifies LPG cylinders through any means
such as but not limited to, changing the cylinder valve, repainting, and re-
labeling, by any person other than the cylinder owner shall, upon
conviction, be penalized with a fine of One Thousand Pesos (Php1,000.00)
for an individual and Two Thousand Pesos (Php2,000.00) for a corporation,
for each tampered or altered LPG cylinder, or imprisonment of at least six (6)
months but not more than two (2) year, or both, at the discretion of the
court: Provided, That second and subsequent violation shall be penalized
with both fine and imprisonment: Provided, further, 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 corporation.

20


SEC. 32. Illegal Possession of LPG Cylinder Seal. - Any person
found in possession of LPG cylinder seals, including the seals already used
in the cylinders without authority from the cylinder owner or its authorized
refiller shall, upon conviction, be penalized with a fine of Five Hundred
Pesos (Php500.00) for an individual and One Thousand Pesos (Php1,000.00)
for a corporation for each LPG seal found in its or his possession, 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 second and 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 (Php500,000.00) for an individual and One Million Pesos
(Php 1,000,000.00) for a corporation.

SEC. 33, Failure to Comply with Weighing Device Requirements. -
A refiner, importer, refiller, dealer or retail outlet who fails to comply with
the requirements pertaining to weighing devices under Chapter III, shall be
penalized with a fine of Ten Thousand Pesos (Php10,000.00) for an
individual or Twenty Thousand Pesos (Php20,000.00) for a corporation.

SEC. 34, Overloading. - A hauler who loads and transports, or
permits the loading and transportation of LPG cylinders 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 (Php20,000.00) for an individual and Fifty
Thousand Pesos (PhpS0,000.00) for 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. 35. 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 DTI, shall, upon conviction, be
penalized with a fine of One Hundred Thousand Pesos (Php100,000.00) or
Three Thousand Pesos (Php3,000.00) per cylinder or container whichever is
higher, and imprisonment of at least six (6) months and one (1) day to two
(2) years.

SEC. 36. Sale or Distribution to Non- complying Persons or
Entities. - A cylinder manufacturer, refiner, importer, refiller, dealer or
retail outlet who knowingly sells or distributes LPG or 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 DOB,
shall upon conviction, be penalized for each sale or distribution with a fine
of not less than One Hundred Thousand Pesos (Php100,000.00) but not

2a


more than Five Hundred Thousand Pesos (Php500,000.00) or imprisonment
of at least six (6) months but not more than two (2) years, or both at the
discretion of the court.

SEC. 37. Pilferage of LPG. - Any person who pilfers LPG, upon
conviction, shall be penalized with a fine of Fifty Thousand Pesos
(Php50,000.00) for an individual and One Hundred Thousand Pesos
(Php100,000.00) for a corporation 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 second and 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 (Php500,000.00) for an
individual and One Million Pesos (Php1,000,000.00) for a corporation.

SEC. 38. Imposition of Administrative Penalty. - The DOE may, in
addition to or in lieu of the institution of a criminal action in a court of law,
impose an administrative penalty within the range of Ten Thousand Pesos
(Php10,000.00) up to One Hundred Thousand Pesos (Php100,000.00) for
each offence in this Chapter and such other violation of this Act.

SEC. 39. “Strike Three” Penalty. - Any person convicted with finality
of violation the provisions of this Act for Three (3) consecutive instances
shall be perpetually disqualified from engaging in any activity in the LPG
industry.

SEC. 40, Refusal to Refund the Deposit. - Any authorized dealer or
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 (Php1,500.00) for each
LPG cylinder and a warning that its registration and Standard Compliance
Certificate shall be cancelled: Provided, That second and subsequent
violation shall be imposed a fine of Three Thousand Pesos (Php3,000.0) per
cylinder and cancellation of its registration and Standard Compliance
Certificate.

SEC. 41. Non-participation in the LPG Cylinder Exchange,
Swapping, and Rehabilitation Program. — Any LPG industry player that
deliberately refuses to participate in the LPG Cylinder Exchange, Swapping
and Rehabilitation Program of the Department of Energy shall be
administratively charged and upon proper proof, its registration and
Standard Compliance Certificate shall be cancelled.

22


SEC. 42. 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 industry players convicted with finality of
violation of this Act.

SEC. 43. Violations by Judicial Entities. - If the violation is
committed by a corporation, partnership, association or other judicial entity,
the penalty of imprisonment shall be imposed on the responsible directors
or officers thereof. If the offender is an alien, he shall be deported
immediately without further proceedings, after service of sentence.

SEC. 44. Prosecution Under Separate Laws. - Prosecution under
this Act shall be without prejudice to any liability for violation of any
provision of the Revised Penal Code, Republic Act No. 9514, otherwise
known as the “Revised Fire Code of the Philippines of 2008,” Republic Act
No. 8293, otherwise known as the “Intellectual Property Code of the
Philippines,” and other applicable laws. The fines provided in this Chapter
shall be without prejudice to any legal claims or damages which any injured
party suffers as a result of any of the enumerated prohibited acts under this
Chapter.

CHAPTER V
EDUCATION AND RESEARCH

SEC. 45. 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. In addition to such educational program, the
DOE and/or 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. 46. Public Information Campaign. - The DOE, in coordination

with the Philippine Information Agency, the DILG and such other

appropriate government agencies, shall jointly develop and implement an
23


effective strategy for the dissemination of information to the public about
LPG cylinder quality and safety.

SEC. 47, Development Research. - The DOE, in coordination with
the DOST and the DTI, shall conduct study and research for the purpose of
developing more efficient methods of providing safe, clean, and hazard-free
LPG consumers.

CHAPTER VI
FINAL PROVISIONS

SEC. 48. Implementing Rules and Regulations. ~ Unless otherwise
provided in this Act, the DOE, in consultation with the DTI, other
appropriate agencies, the LPG industry participants and consumer groups,
shall be the lead agency with the responsibility to formulate, issue and
promulgate the necessary implementing rules and regulations within ninety
(90) days from the effectivity of this Act.

SEC. 49. Transition Phase. - In order to provide a smooth
implementation of the monitoring and supervisory mechanisms provided
herein, the industry participants shall be given a grace period of one
hundred eighty (180) days from the effectivity of this Act, within which to
comply with the provision hereof: Provided, That during the transition
period, the industry participants shall continue to be bound and made liable
under the provisions of existing laws, rules and regulations not otherwise
repealed by this Act. Industry participants already legally engaged in
business upon the effectivity of this Act and who are required to secure a
Standards Compliance Certificate prior to the renewal of their business
licenses as provided in Section 15 of this Act, shall not be required to obtain
a Standards Compliance Certificate for the duration of the grace period.

SEC. 50. 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 five (5)
senators and five (5) representatives to be appointed by the Senate President
and the Speaker of the House of Representatives, respectively. The oversight
committee shall be chaired by a senator and a representative designated by
the Senate President and the Speaker of the House of Representatives,
respectively.

The mandate given to the joint congressional oversight committee
under this Act shall be without prejudice to the performance of the duties

24


and functions by the respective existing oversight committees of the Senate
and the House of Representatives.

SEC. 51. Legal Assistance to Public Officials. - Public officials or
other authorized persons acting under the direction of the Secretaries of the
DOE, the DTI, the DILG and other concerned government agencies shall be
provided with free legal assistance, liability insurance and other forms of
protection and indemnification for all costs and expenses reasonably
incurred by such persons, in connection with any civil and/or criminal
action, suit or proceeding to which they may be or have been made a party
by reason of the performance of their functions or duties, unless they are
finally adjudged in such action or proceeding to be liable for gross
negligence or misconduct or grave abuse of discretion.

Sec. 52. 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. 53. Repealing Clause. - All laws, decrees, executive orders,
proclamations and administrative regulations, or parts thereof inconsistent
herewith are hereby repealed or modified accordingly.

SEC. 54. 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.

25


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH (15*) CONGRESS
First Regular Session

MINUTES OF THE JOINT MEETING OF THE COMMITTEE ON TRADE &
INDUSTRY AND THE COMMITTEE ON ENERGY HELD ON JUNE 7, 2011,
9:30 AM, AT CONFERENCE ROOMS | & 2, G/F, SPEAKER RAMON V.
MITRA, JR. BUILDING, IIOUSE OF REPRESENTATIVES COMPLEX,
BATASAN HILLS, QUEZON CITY

‘Agenda: Deliberation on and Approval of the Draft Bill in substitution to the
following House Rills re: proposed LPG Industry Regulation and Safety
Act:

(1) HB 1418 - “AN ACT TO ESTABLISH TIE REGULATORY
FRAMEWORK FOR THE SAFE OPLRATIONS OF THE
LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY. PROVIDE
ADDITIONAL. POWERS 10 THE DEPARTMENT OF ENERGY.
DEFINE AND PENALIZE CERTAIN ACTS, AND FOR OTHER
PURPOSES.” introduced by Rep. Yap S.

Q) HB 3976 - “AN ACI ESTABLISHING THE REGULATORY
FRAMEWORK FOR CONDUCT OF BUSINESS AND THE SAFE
OPERATIONS OF THE LIQUEFIED PETROLEUM GAS (LPG)
INDUSTRY, DEFINE AND PENALIZE CERTAIN ACTS~
introduced by Rep. Ty

L CALL TO ORDER

Rep. Tomas Apacible. Senior Vice-Chairperson of the Committee on ‘Trade
and Industry. and Rep. Henedina Abad. Chairperson of the Committee on Energy.
called the meeting to order at 9:44 A.M.

TL. ROLL CALL AND DETERMINATION OF QUORUM

On motion of Rep. Peter Unabia, duly seconded and there being no objection.
both Commitees dispensed with the Calling of the Roll.

Ul, OPENING REMARKS OF THE CHAIRPERSONS

Rep. Apacible acknowledged and thanked the Members and resource persons
who responded to the joint Committee's invitation to the meeting.


He expressed his gratitude to Rep. Albert Garcia, Trade and Industry
Committee Chairperson, the Commitice Secretariat and the Legislative StafT for their
assistance in the drafting of the proposed Liquefied Petroleum Gas (LPG) Industry
Regulation and Safety Act of 2011

Rep. Abad stated that she was deeply honored to be a part of the process of
crafting the bill under consideration. She emphasized that one of the important
functions of legislation is to ensure effective regulation to protect the interest of the
public, She also thanked those who in one way or another helped the joint
Committces in arriving at the draft substitute bill

1V. DELIBERATION ON THE PROPOSED LPG REGULATION ACT

Thereafter, Rep. Apacible presented the salient features of the proposed LPG
Industry Regulation and Safety Act of 2011

The objectives of the subject measure are as follows:

1. To establish a regulatory framework for the refining, importation, refilling.
distribution and marketing LPG. and the maoufacture, requalification.
exchange und swapping of LPG cylinders;

2. To establish standards of conduct and codes of practice for the LPG industry,
which covers all activities and businesses related to LPG product for
household, commercial. industrial or automotive use of (Auto-.PG) and
cylinders‘or containers for LPG:

3. Yo address quality and safety concerns and uphold the right of consumers to
freely choose the 1.PG brand they want to purchase; and

4, fo rationalize all applicable laws and executive issuances on the LPG industry
to strengthen and enhance existing mechanisms against hazards to health and
safety and deceptive and unconscionable trade and practices within the
industry.

Likewise, Rep. Apacible discussed the sulient features of the draft bill. as
follows:

1. It designates the Department of Energy (DOE) as the Jead agency and provide
additional functions in the performance of their duties, on all matters
concerning the [PG industry;

i)

It assigns the Department of Trade and Industry (DTI) as the lead agency on
all matters concerning LPG cylinders and ancillary equipment;

we

It allows for effective coordination between the DOE and DI. and grants
certain powers and functions to other agencics and local government units
(LGUs) for the effective implementation of this Act;

4. Tt prescribes the licenses, permits and other business requirements necessary to
engage in any activity or business involving LPG;


5. {t sets down the specifications for LPG weighing devices. LPG cylinder
sealingalabstivg xeauicements for JPG cylinders, as, well_ as the operation of

6. It requires the periodic monitoring of the operations, activities, facilities and
equipment of LPG industry participants. and their compliance with the quality
standards established by the DOF. for the LPG industry consistent with the
Philippine National Standards (PNS) formulated by the Bureau of Product
Standards (BPS),

7. It lays down the process for LPG cylinder exchange. swapping and
rehabilitation. and the requirements in the operation of Auto-LPG:

8. It outlines the procedures in the treatment and handling of LPG which have
been declared injurious. unsafe or dangerous,

9. It establishes presumption of ownership of the LPG cylinder or container to
the brand owner whose permanent mark appears on the T.PG cylinder;

10.1t identifies and defines prohibited acts, and imposes fines and/or
imprisonment upon conviction 1o any person who commits such illegal acts:

11. It bans the importation of used or second-hand LPG cylinders;
12. Tt mandates the dissemination of information to the public about LPG,

quality and safely, and the creation of a central data base of industry
participants:

13.It creates a Joint Congressional Oversight Committee to be composed of
members of the Senate and the House of Representatives which shall oversee
the implementation of the LPG Industry Regulation and Safety Act of 2011:
and

14. 1t grants free legal assistance to public officials or other authorized persons
acting under the direction of the Secretaries of the DTI, DOE, DILG and other
concerned agencies in connection with any civil or criminal action, suit or
Proceeding to which they may be. or have been made, a party by reason of the
performance of their functions or duties.

Rep. Carlos Padilla requested the joint Committee to define “program
participants” and also requested the Secretariat to go over the draft bill for some
typographical errors,

Rep. Benhor Salimbangon sought clarification whether there is a provision in
the drafi bill which allows local LGUs to coilect taxes on LPG aside from the taxes
collected by the National Government. He opined that there should only one kind of
tax levied on LPG.



Vv. ACTION TAKEN BY THE COMMITTEE

‘After full and free deliberation. and on motion of Rep. Padilla, duly seconded
and there being no objection. the joint Commitice approved the substitute bill subject
lo style and directed the Secretariat to prepare the corresponding Committee Report
thereon,

VI. ADJOURNMENT

There being no other matters to be taken up. the meeting was suspended at
10:22 AM.

Certified true and correct to the best of our knowledge and ability

Prepared by:

eararurd’t MALIMET
SLSOL
Committee on Trade & Industry

Reviewed by:

“ommittee on Energy Yommittee on Trade & Industry

Noted by:

Committee on Energy

‘ommittee on Trade & Industry