Republic of the Philippines
HOUSE OF REPRESENTATIVES
QUEZON CITY

EIGHTEENTH CONGRESS
First Regular Session

2040

HOUSE BILL NO.

Introduced by Representative Rodolfo B. Albano

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 standards and mechanisms against dece[tive
and harmfill practices and other hazards to public health and safety arising under a deregulatory downstream
oil industry.

This bill also seeks to address the problem posed by almost 12 million dilapilated, unsafe,
scrappage, substandard and defective LPG cylinders in the market (according to the data of the Department
of Energy) by creating a white cylinder exchange program for the benefit of the consumers and to prevent
and minimize fire incidents leading to loss of lives and properties. LPG is a widely used fuel commodity
in the Philippines and most Filipino households use LPG for cooking.

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

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

During the Seventeenth (17" ) Congress, the Committee on Energy created a Technical Working
Group (TWG), participated in by the government and private sectors, to consolidate and harmonize with
the other LPG bills. The TWG approved the Substitute Bill on the Establishment of the Safe Operations
of the LPG Industry on November 20, 2017.

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

WK



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

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 2040

Introduced by Representative Rodolfo B. Albano

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

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

CHAPTER I
GENERAL PROVISIONS

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

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

Towards this end, the State shall:

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

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

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


ZS eer Auneon

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

2

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

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

SEC. 4. Definition of Terms. - For purposes of this Act, the term:

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

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

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

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

(c) Auto-LPG Dispensing Station refers to an outlet, facility or business
establishment which retails auto-LPG directly to individual end-users or to

the motoring public; the same may stand alone or be located within or


3
operated with a liquefied petroleum product (LPP) retail outlet. It shall be
deemed a dealer or retail outlet for purposes of this Act;

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

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

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

(i) Canister or Cartridge refers to non-refillable container filled once
only with gas or a mixture of gases for fueling portable gas appliances;

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

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

() Consumer refers to any person, natural or juridical, who purchases
LPG for one's own consumption;

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

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

(0) Cylinder or LPG Cylinder refers to any portable pressure-vessel, or
container for LPG with water capacity of one (1) liter to one hundred fifty
(150) liters, or as may be prescribed under the Philippine National
Standards (PNS), and designed for sale, transportation, storage or
household /commercial/industrial consumption of LPG;

(p) Cylinder Owner refers to the owner of the cylinder as shown by the

brand, mark, trade name or business name embossed or engraved or


4
otherwise permanently indicated on the LPG cylinder in the manner
prescribed by the DTI;

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

() Defective Cylinder refers to LPG cylinder which do not bear the
complete marks prescribed under existing laws, rules, regulations and
standards [a] or damaged, unsafe and dilapidated LPG cylinder due to
corrosion or pitting, dents, cuts, gouges, digs, bulges, leaks and other
similar defects that render the LPG cylinder unsafe, injurious or dangerous
for distribution, [in accordance with the guidelines set by the DTI] thus
creating a substantial risk of injury to the public, in accordance with the
guidelines set by the DTI;

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

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

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

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

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

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

entities;


ea aun

10
aT
12
13

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

5

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

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

(y) Philippine National Standards or PNS refers to the standards
promulgated by the BPS of the DTI relating to product specifications, test
methods, terminologies and standardization procedures, guidelines or
practices;

(2) Pilferage refers to theft of a less quantity of LPG from a large
container such as LPG tanker, lorry or other similar conveyances or from
LPG pipelines or similar installations;

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

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

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

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

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

(f) Re-qualification refers to the method or procedure by which an
LPG cylinder is subjected to inspection and re-evaluation in accordance with
the prescribed specifications and any other standards prescribed governing
the method of re-qualification of steel cylinders for LPG to determine its


ea aAurun

i
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

6
acceptability for continuous use and distribution and subsequent repair or
scrappage, where appropriate;

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

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

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

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

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

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

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

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

CHAPTER II
IMPLEMENTING AGENCIES

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

consumer welfare standards.


Ce aS)

10
11
12
13

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

7

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

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

(b) Implement safety standards prescribed by the DOE or set in the
PNS promulgated by the BPS for refilling plants, depots, storage areas,
transportation facilities and other facilities or business premises of the
owners thereof and retail outlets, and exercise reasonable visitorial powers
in order to inspect and evaluate whether such refilling plants, depots,
storage areas, transportation facilities and other facilities or business
premises and retail outlets comply with such safety standards. During
inspection, the DOE may scrutinize the records of the concerned LPG
industry participant;

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

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

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

() Implement the Philippine LPG Cylinder Improvement Program;

(g) Direct LPG brand owners to periodically submit cylinders for
requalification, and to secure proper proof of compliance therewith in

accordance with the requirements of the DTI;


ea anew nD

10
i
12
13

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

8

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

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

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

(k) Create and maintain a central database of LPG industry
participants, and an inventory of existing and projected LPG supply levels in
the country subject to the limitations provided for in this Act, which shall be
updated monthly on its own initiative or through reports of LPG industry
participants;

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

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

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

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

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

SEC. 7. Powers and Functions of the DTI. — In addition to its powers
and functions under existing laws, the DTI shall have the following exclusive

powers and functions under this Act:


9

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

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

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

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

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

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

(a) Coordinate with local government units (LGUs) and the Philippine
National Police (PNP), in close coordination with the DOE and DTI, for the
orderly and effective implementation of this Act; and

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

SEC. 9. Powers and Functions of LGUs. - The LGUs shall:

(a) assist the DOE by providing an adequate and safe area where
impounded LPG cylinders shall be kept{.]; and [The LGU shall]

(b) immediately suspend or revoke the business permit or license
to operate of, and issue closure order to an LPG industry participant upon
the issuance by the DOE of a notice of suspension or revocation of the
license to operate.

SEC. 10. Powers and Functions of the Philippine National Police
(PNP). - The PNP shall, upon request of the DOE or the DTI, provide security
to life and property during the conduct of operations for the implementation


ZT Sexe wv d sAH eon

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

10
of this Act, such as in the confiscation of LPG cylinders found in violation of
this Act, and during the transport of the confiscated LPG cylinders to the
impounding area: Provided, That the PNP shall not, by itself, conduct LPG
inspections nor confiscate LPG cylinders without a formal request from the
DOE and DTI.

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

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

i. Secretary of the DOE as Chairperson;

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

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

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

v. Representatives from the private-sector entities AND

CONSUMER GROUPS as may be determined by the Chairperson.

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

i, Assist the DOE in monitoring and compliance standards
inspection as provided in this Act; and

ii, Exercise other powers and functions necessary to give force
and effect to this Act.

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

CHAPTER III

LICENSES, PERMITS AND OTHER BUSINESS REQUIREMENTS

SEC.12. License to Operate. -

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


u
documentary requirements and safety rules and regulations prescribed by
the DOE and other pertinent government agencies.

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

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

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

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

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

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

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

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

with said bulk consumers.


12

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

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

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

SEC. 15. Mandatory Requirement Prior to LGU’s Issuance or
Renewal of Local Government Business License or Mayor’s Permit. -
The license to operate shall be a mandatory requirement for the grant or
renewal of any LGU business license or Mayor’s permit to engage in
business involving LPG regardless of whether or not the products or
activities constitute the entire or a portion of the business for which a
business license is sought by the applicant.

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

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

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


13
Any person already engaged in the business of re-qualification, repair,
scrappage of LPG cylinder, and seal manufacturing shall upon the effectivity
of this Act, apply for a certificate of accreditation from the DTI.
CHAPTER IV
AUTO-LPG

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

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

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

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

CHAPTER V
OWNERSHIP OF LPG CYLINDERS

AND CONTAINERS FOR AUTOMOTIVE AND DOMESTIC USE

SEC. 19. Ownership of LPG Cylinders. — The LPG brand owner
whose permanent mark appears on the LPG cylinder shall be presumed the
owner thereof, irrespective of the party in custody or possession of the LPG
cylinder. For existing LPG cylinders, including all imported cylinders,
without the embossed markings or signs, permanent marks refer to
distinctive collars or collars with distinctive designs or markings of
permanent character installed upon requalification or prior to local
circulation, as the case may be.

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


14

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

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

CHAPTER VI
MONITORING AND ENFORCEMENT MECHANISMS

SEC. 21. Reports and Disclosures to the DOE. - Subject to the
limitations under this Act, the DOE shall have the power and authority to
require LPG industry participants to submit written, electronic or other
forms of reports or disclosures. Any LPG industry participant who fails to
submit any such report or disclosure within the period and in the manner
prescribed by the DOE shall be penalized under this Act.

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

if any; agreements with other LPG industry participants, such as for cross-


15
filling and similar arrangements; list of lost, stolen or missing LPG cylinders;
and such other relevant information as may be determined by the DOE.

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

The provisions of Republic Act No. 8293, otherwise known as the
“Intellectual Property Code of the Philippines,” and other laws insofar as
applicable shall continue to apply to information, documents, plans and
other matters disclosed pursuant to this Act.

CHAPTER VII
DECLARATION OF LPG CYLINDER AS DEFECTIVE,
INJURIOUS, UNSAFE OR DANGEROUS

SEC. 23. Declaration of LPG Cylinder as Defective, Injurious,
Unsafe or Dangerous. - When the DOE or DTI, as the case may be, finds,
motu proprio or upon petition of any person, that an LPG cylinder is generic,
non-compliant, defective, injurious, unsafe or dangerous, it shall, after due
notice, issue the appropriate order for its immediate confiscation, recall,
seizure, impoundment or prohibition from public sale or distribution, in
which case the LPG cylinder owner shall be afforded a hearing within forty-
eight (48) hours from issuance of such order, for the purpose of determining
the propriety of the recall and seizure of the LPG cylinders: Provided, That
such a declaration shall be limited to instances when the LPG cylinder is
already filled and already sealed inside a refilling plant, dealer's showroom,
retail outlets, or LPG cylinder transporter: Provided, further, That the DOE


16

or the DTI shall, within thirty (30) days from termination of administrative
proceedings, make a final determination as to whether or not an LPG
cylinder is defective, injurious, unsafe or dangerous.

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

CHAPTER VIII
‘TRANSPORT OF LPG IN CYLINDERS

SEC. 24. Transport of LPG in Cylinders. - The DOE shall, in
consultation with other concerned government agencies, issue appropriate
guidelines for the transport of LPG in cylinders. The LPG industry
participants shall not allow any vehicle used for the transport of LPG in
cylinders to enter its premises, including refilling plants, depots or
warehouses, unless such vehicle has complied with the requirements of the
DOE for the transport of LPG in cylinders. For the transport of LPG in
cylinders to households, the LPG industry participants shall only use
vehicles that meet the requirements prescribed by the DOE, as well as those
of the Department of Transportation and Communications (DOTC), the
Department of Public Works and Highways (DPWH) and the concerned
LGUs. As proof of compliance, the certificate of road worthiness from the
Land Transportation Office (LTO) or the Land Transportation Franchising
and Regulatory Board (LTFRB) shall be presented as additional documentary
requirement for the issuance and renewal of a license to operate.

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

CHAPTER IX
PHILIPPINE LPG CYLINDER IMPROVEMENT PROGRAM


wer Awe

10
i
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

7

SEC. 25. Philippine LPG Cylinder Improvement. - A Philippine LPG
Cylinder Improvement Program shall, within six (6) months upon the
effectivity of this Act, be implemented with the objective of safeguarding and
ensuring the safety of consumers. The DOE shall, upon prior consultation
with the LPG industry participants, consumer groups, and other government
agencies concerned, come up with the Philippine LPG cylinder improvement
program within one hundred eighty (180) days from the approval of this Act.
The program shall include the mechanics, rules, and regulations on
swapping, exchange, return of cylinders and other requirements with the
objective of safeguarding and ensuring the safety of the consumers.

CHAPTER X
PROHIBITED ACTS, FINES AND PENALTIES

SEC. 26. Engaging in Business without License to Operate. - Any
LPG industry participant who engages in business without securing a
License to Operate from the DOE as required under this Act shall be
penalized with a fine of not more than Five thousand pesos (P5,000.00) for
each day of operation without a License to Operate: Provided, That the
maximum fine to be imposed shall be Five hundred thousand pesos
(P500,000.00) for an individual and One million pesos (P1,000,000.00) for a
partnership or corporation.

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

SEC. 28. Refusal or Obstruction of Inspection. - Any LPG industry
participant who refuses, prevents or obstructs the inspection of its premises
and records as required under this Act shall be penalized with a fine of not
more than Three hundred thousand pesos (P300,000.00) for the first
violation, Five hundred thousand pesos (P500,000.00) for the second
violation and revocation of the License to Operate for the third violation.

SEC, 29. Failure to Post License to Operate. - Any LPG industry
participant concerned who fails or refuses to post its License to Operate


18
shall be penalized with a fine of not exceeding Five thousand pesos
(P5,000.00) for each instance of violation.

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

SEC. 31. Mlegal Storage. - Any person who stores LPG in bulk
without obtaining a License to Operate or Certificate of Non-Coverage as
required under this Act shall be penalized with a fine of not less than
Twenty thousand pesos (P20,000.00) but not more than One hundred
thousand pesos (P100,000.00).

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

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

(b) Failure to secure the required PNS Certificate for LPG cylinders
shall be penalized with a fine of Five thousand pesos (P5,000.00) for each
non-compliant LPG cylinder used and distributed to consumers: Provided,
‘That the maximum fine to be imposed shall be Five hundred thousand pesos
(P500,000.00) for an individual and One million pesos (P1,000,000.00) for a
partnership or corporation. Non-compliant LPG cylinders shall be


19
confiscated and forfeited in favor of the government and disposed of
accordingly: Provided, [further,] That this section shall apply only after the
full implementation of the Philippine LPG Cylinder Improvement Program.

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

SEC. 34. Underfilling. - When the net quantity of LPG contained in
LPG cylinders intentionally sold, transferred, delivered or filled by refillers is
less than the LPG cylinder content required by the DOE at the filling plant,
the refiller shall be penalized with a fine of Five thousand pesos (P5,000.00)
for each underfilled LPG cylinder: Provided, That the maximum fine to be
imposed shall not exceed Five hundred thousand pesos (P500,000.00) for an
individual and One million pesos (P1,000,000.00) for a partnership or
corporation.

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

The following shall be considered as prima facie evidence of

underfilling:


20

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

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

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

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

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

(c) Refilling of LPG cylinder with bearing defaced, tampered or illegible

markings contrary to the mandatory labelling and stamping requirements
under this Act;

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

(c) Filling of LPG cylinder directly from LPG tank trucks without the
use of approved filling machines;

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

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

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

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

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


ZS cee rx Aauneon

12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

21

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

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

An LPG industry participant found guilty of illegal refilling under this
section shall be penalized with a fine of five thousand pesos (Php5,000.00)
for each illegally-filled or refilled LPG cylinder, Provided, further, That the
maximum fine to be imposed shall be Five hundred thousand pesos
(P500,000.00) for an individual and One million pesos (P1,000,000.00) for a
corporation: Provided, finally, That illegally refilled LPG cylinders described
in sub-paragraphs (c), (4), (e), (, (g), (h) and (i) above shall be confiscated
outright and the refillers, dealers or retail outlets thereof shall be penalized
with the aforementioned penalties.

SEC. 36. Hoarding. - Any LPG industry participant who, before a
price increase or in times of tight supply, unduly accumulates LPG products
beyond his normal inventory levels and unreasonably limits or refuses to
dispose of, sell, or distribute LPG products to the general public, even if the
buyer or consumer has the ability to pay in cash for the LPG products, shall
be penalized with a fine of at least One hundred thousand pesos
(P100,000.00) but not more than One million pesos (P1,000,000.00). The
determination of said participant's usual inventory shall be reckoned from
the third (3rd) month immediately preceding the discovery of the stocks in
case said participant has been engaged in the business for at least three (3)
months, Otherwise, it shall be reckoned from the time the participant
started the business.

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

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

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

SEC. 37. Unauthorized Trading of LPG Cylinders. - Any person
who, without the consent of the LPG brand owner, stores or sells empty LPG
cylinders in excess of those allowed by the DOE, through LPG cylinder


2
swapping and other similar industry practices and exchanges, barters, sells,
distributes or otherwise transfers ownership or possession thereof to a
person or entity other than the LPG brand owner and without the authority
of the LPG brand owner, shall be penalized with a fine of Five thousand
pesos (P5,000.00) for each illegally-stored or sold empty LPG cylinder:
Provided, That the maximum fine to be imposed shall be Five hundred
thousand pesos (P500,000.00) in case of an individual and One million
pesos (P1,000,000.00) in case of a partnership or corporation.

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

SEC. 39. Illegal Possession of LPG Cylinder Seal. - Any person
found in possession of LPG cylinder seals, including the seals already used
in the LPG cylinders without authority from the LPG cylinder owner or its
authorized refiller shall be penalized with a fine which shall not exceed Five
thousand pesos (P5,000.00) for each LPG seal found in its or his possession:
Provided, That the maximum fine to be imposed shall be Five hundred
thousand pesos (P500,000.00) for an individual and One million pesos
(P1,000,000.00) for a partnership or corporation.

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

partnership or corporation.


Socwryvrd Hw» kYwNH

ul
12
13
14
1S
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

23

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

SEC. 42. IMlegal Importation of Used or Second-Hand LPG
Cylinders and Tin Canisters or Cartridges. - Any person who imports
used or second-hand LPG cylinders or tin containers or cartridges, without
securing authority to import from the DTI, shall be penalized with a fine of
One hundred thousand pesos (P100,000.00) or Five thousand pesos
(P5,000.00) per LPG cylinder or container whichever is higher.

SEC. 43. Sale or Distribution to Non-complying Persons or
Entities. - Any LPG industry participant who knowingly sells or distributes
LPG products, LPG cylinders or LPG seals to persons or entities without
License to Operate from the DOE or Accreditation from the DTI, as the case
may be, shall be penalized for each sale or distribution with a fine of not less
than One hundred thousand pesos (P100,000.00) but not more than Five
hundred thousand pesos (P500,000.00).

SEC. 44. Pilferage of LPG. - Any person who pilfers LPG shall be
penalized with a fine of Five hundred thousand pesos (P500,000.00) for an
individual and One million pesos (P1,000,000.00) for a corporation: That the
maximum fine to be imposed shall be Five hundred thousand pesos
(P500,000.00) for an individual and One million pesos (P1,000,000.00) for a
corporation.

SEC. 45. Sale or Distribution of LPG-filled Cylinders Without
Seals. - Any person, brand owner, its authorized refiller, dealer or retail
outlet who sells or distributes LPG-filled cylinders without seal, with
tampered, fake or broken seals, or with seal not belonging to the brand
owner shall be penalized with a fine of not less than Five thousand pesos


a aro

i
12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

24
(P5,000.00) for each LPG cylinder: Provided, That the maximum fine to be
imposed shall be Five hundred thousand pesos (P500,000.00) for an
individual and One million pesos (P1,000,000.00) for a partnership or
corporation.

SEC. 46. Refiling, Sale or Distribution of LPG in Canisters or
Cartridges. - It shall be unlawful for any person to refill, sell, trade, or
distribute LPG in single-trip tin canister or cartridge that is intended or
labeled as for one time use only, not designed or intended for LPG, not in
compliance with existing PNS or in the absence of PNS, without the express
consent, approval or conformity of the DTI.

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

hundred thousand pesos (Php500,000.00) for an individual and One million

pesos (Php1,000,000.00) for a partnership or corporation.

SEC. 47. Profiteering. - The sale or offering for sale of [any basic
necessity or prime commodity] LPG at a price grossly in excess of its true
worth. There shall be prima facie evidence of profiteering whenever a basic
necessity or prime commodity being sold: (a) has no price tag; (b) is
misrepresented as to its weight or measurement; (c) is adulterated or
dilluted; or (d) whenever a person raises the price of any basic necessity or
prime commodity he sells or offers for sale to the general public by more
than ten percent (10%) of its price in the immediately preceding month:
provided, that, in the case of agricultural crops, fresh fish, fresh marine
products, and other seasonal products covered by this act and as
determined by the implementing agency, the prima facie provisions shall not
apply.

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


Secwmrvrd ven

i
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

25

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

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

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

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

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

() Putting [Wrong] incorrect, inaccurate or misleading information
such as, but not limited to, the tare weight, [stamped] on the LPG cylinder
[such as the tare weight]; and

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

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

SEC. 49. Share of LGUs on Fines and Penalties. - The LGU
concerned shall be allotted a forty percent (40%) share of the proceeds from
fines and penalties collected by the DOE: Provided, That the remaining sixty
percent (60%) shall be used by the DOE to implement the provisions of
Section 56 and 57 of this Act.

SEC. 50. "Strike Three” Penalty. - Any person convicted or found
administratively liable with finality of violating the provisions of this Act for
three (3) instances shall be disqualified from engaging in any activity in the
LPG industry for a period as may be determined by the DOE.

SEC. 51. Publication of [Persons Convicted of Violations] Violators
of this Act. - The DOE shall, on a quarterly basis, publish in a newspaper


26
of general circulation, the names of LPG industry participants found liable
for prohibited acts under this Act.

SEC. 52. Violations by Juridical Entities. - If the violation is
committed by a corporation, partnership, association, or other juridical
entity, the penalty of imprisonment shall be imposed on the responsible
directors or officers thereof. Any new juridical entity formed by persons
previously found in violation of the prohibited acts under this Act shall not
be eligible for any license to operate by the DOE. If the offender is an alien,
he shall be deported immediately, without further proceedings, after service
of sentence.

SEC. 53. Imposition of Minimum and Maximum Penalty for
Administrative Actions. - The DOE shall, after public consultation,
formulate a table of penalties to determine the minimum and maximum
penalty which shall be imposed for each prohibited act provided in this Act:
Provided: That the penalty shall be within the minimum and maximum
range provided for each prohibited act mentioned in this Act, and taking into
consideration the classification of the offender as a retail outlet, dealer,
marketer, refiner, refiller, hauler, importer or hoarder, and the number of
times or instances such prohibited act is committed by the offender:
Provided, further, That nothing herein shall preclude the DOE from ordering
the suspension or cessation of the operation of the facility, or the closure
thereof until such time that mandatory requirements or corrective measures
as directed by the DOE have been met.

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

explanation.


27

SEC. 55. Initiation of Criminal Action. - In addition to the
administrative sanction that may be imposed, a criminal action may be
initiated against any person who commits any of the prohibited acts
provided under sections (31), (32), (33), (34), (35), (36), (37), and (44) hereof
and who shall, upon conviction, be imposed with a fine within the minimum
and maximum range prescribed for the prohibited act provided in this Act,
or with imprisonment of at least six (6) months, but not more than two (2)
years, or both, at the discretion of the court.

SEC. 56. Applicability of Penalties. - The penalties provided in the
preceeding sections shall be applied prospectively.

CHAPTER XI
EDUCATION AND RESEARCH

SEC. 57. Usage Requirements for consumers and End-Users. - The

DOE and the DTI shall jointly undertake educational and information

dissemination activities to enhance customer awareness among LPG
consumers and end-users. The DOE and the DTI, after consultation with the
LPG industry participants, may prescribe rules and regulations in relation to
the following:

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

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

(o) 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. 58. Development Research. - The DOE shall, in coordination
with the Department of Science and Technology (DOST) and the DTI,
conduct study and research for the purpose of developing more efficient
methods of providing safe, clean and hazard-free LPG to consumers.

CHAPTER XII
FINAL PROVISIONS

SEC. 59. Implementing Rules and Regulations. - Unless otherwise
expressly provided in this Act, the DOE shall, in consultation with the DTI,
Department of Labor and Employment (DOLE), other appropriate agencies,


Socwerxr aH een

i

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

28

consumer groups and the LPG industry participants, be the lead agency to
formulate, issue and promulgate the necessary implementing rules and
regulations within sixty (60) days from the effectivity of this Act. The
implementing rules and regulations shall cover, among others, guidelines
and standards for LPG weighing devices, cylinder sealing, labeling
requirements, quality standards, delivery vehicles, drivers, and attendants,
and the Philippine LPG Cylinder Improvement Program.

SEC. 60. Transition Phase. - The DOE shall, upon prior consultation
with the LPG industry participants and other government agencies, and
taking into account data obtained from LPG industry participants and other
sources, determine the appropriate period for the transition phase to allow
for compliance by all LPG industry participants with the objectives of this
Act.

SEC. 61. Appropriations. - The amount necessary to effectively
implement the provisions of this Act shall be charged against the current
year’s appropriations of the Department of Energy. Thereafter, such sums as
may be necessary for its continued effective implementation shall be
included in the Annual General Appropriations Act.

SEC. 62. Joint Congressional Oversight Committee. - There is
hereby created a Joint Congressional Oversight Committee to monitor the
implementation of this Act. The committee shall be composed of three (3)
senators and three (3) representatives to be appointed by the Senate
President and the Speaker of the House of Representatives, respectively. The
oversight committee shall be jointly chaired by the Chairpersons of the
Senate Committees on Energy and Trade and Commerce and the House
Committees on Energy and Trade and Industry: Provided, That the Minority
in both the Senate and the House of Representatives shall be equitably
represented therein: Provided, further, That the Oversight Committee shall
exist for a period of ten (10) years from the effectivity of this Act.

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

and the House of Representatives.


ey AH he

10
aT
12
13
14
15
16
17
18
19

29

SEC. 63. Construction and Interpretation. - Any doubt in the
interpretation of any provision in this Act shall be interpreted in favor of the
interest of the consumers particularly to ensure access to reasonably-priced
LPG and the safety of the consumers and the general public.

SEC. 64. 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. 65. Transparency Clause. - Final decisions, orders and
rulings of the DOE, DTI, DILG, LGUs and the PNP shall, with reference to
the implementation of the provisions of this Act, be published on their
respective websites, subject to existing laws, executive orders, rules and
regulations.

SEC. 66. Repealing Clause. - All laws, decrees, executive orders,
proclamations and administrative regulations, or parts thereof inconsistent
herewith are hereby repealed or modified accordingly.

SEC. 67. Effectivity Clause. - This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in at least two (2)

Pe4e: ALBANO

newspapers of general circulation.

Approved,