. tiU.. .

A W - '

EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
m <&lhu o f lljp
First Regular Session )

SENATE '19 NOV 25 P4 ^7

1188

In tro d u c e d by SEN. W IN GATCHALIAN

AN ACT
P R O V ID IN G FOR THE N ATIO N AL ENERGY POLICY AND REGULATORY
FRAMEWORK FOR THE P H IL IP P IN E LIQ UEFIED PETROLEUM GAS
INDUSTRY

EXPLANATORY NOTE

Liquefied Petroleum Gas (LPG) plays a significant role in the country's residential and
commercial sectors. According to a 2011 study by the Department of Energy (DOE),
53% of Filipino households rely on LPG for their cooking, water heating, and lighting
needs.1 This translates to approximately 49,174,460 individual Filipinos relying on
LPG for their basic energy needs.2 In the commercial sector, domestic LPG
consumption grew at a rapid pace of 10.4% annually from 2007 to 2017.3

Notwithstanding the noteworthy contribution of LPG in addressing the energy needs

of Filipinos and the Philippine economy, the regulation of the industry has failed to

keep up. This is evidenced by a series of accidents involving LPG causing loss o f life,
limb, and property.4 Thus, there is a need to strengthen and streamline the laws

and regulations overseeing the domestic LPG industry.

1 Page 207. 2016 Compendium o f Philippine Energy Statistics and Inform ation. DOE.
2 Highlights on Household Population, Num ber o f Households, and Average Household Size o f th e Philippines (2015 Census o f
Population). Available at: https://psa.gov.ph/content/highlights-household-population-num ber-households-and-average-
household-size-philippines. In 2010, there are an aaverage o f 4.6 persons per household as per PSA data. Available at:
https://psa.gov.ph/content/highlights-household-populabon-num ber-households-and-average-household-size-philippines
3 Page 19. 2017 Key Energy Stabsbcs. DOE.
* 3 June 2019, 1 killed, another hu rt a fte r LPG explodes in Pasay warehouse, available at:
https://new sinfo.inquirer.net/996935/l-killed-another-hurt-after-lpg-explodes-in-pasay-w arehouse. 3 March 2019, Man h u rt in
LPG blast fire, available at: https://w w w .p h ilsta r.eo m /n a bo n /2 0 1 9 /0 3 /0 3 /1 89 8 1 5 6 /m a n -hu rt-lp g -b la st-fire . 9 February 2019,
Bacolod SP seeks to ban LPG in canisters, available at: https://w w w .panaynew s.net/bacolod-sp-seeks-to-ban-lpg-in-canisters/ .
19 June 2018, Fire hits LPG refilling plant in Zamboanga, available at: h ttp s://new s.abs-cbn.com /new s/06/19/18/fire-hits-lpg-
refilling-plant-in-zam boanga.
This proposed measure seeks to provide a national energy policy and regulatory
framework that would govern the following activities in the LPG value chain:
importation, refining, refilling, transportation, conveyance, distribution, and
marketing of LPG, and manufacturing, requalifying, exchanging, and swapping of

LPG pressure vessels. By providing a comprehensive legal framework, this measure

seeks to institute reforms in the LPG industry, address concerns in health, safety,
security, and the environment, and effectively ensure that consumer welfare remains

paramount.

As such, the immediate passage o f this bill is sought.

GATCHA
 EIGHTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session ) oi tiK £>ract.ip

SENATE ’19 NOV 25 P4'-47

Introduced by Senator WIN GATCHALIAN

AN ACT
PR O VIDING FOR THE N ATIO N AL ENERGY POLICY AND REGULATORY
FRAMEWORK FOR THE P H ILIP P IN E LIQ UEFIED PETROLEUM GAS

INDUSTRY

Be i t enacted b y the Senate and the House o f Representatives o f the Philippines in

Congress assembled:

1 CHAPTER I
2 GENERAL PROVISIO NS

3 Section 1. Short Title. - This Act shall be referred to as the "LPG Act."
4 Sec. 2. Declaration o f Policy. - It is hereby declared the policy of the State to

5 protect the interests of consumers, ensure their general welfare, and to establish

6 standards of conduct for business. Towards this end,the State shall:

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

11 LPG pressure vessels;

12 (b) Institute reforms in the existing standards of conduct and codes of

13 practice for the LPG industry;

 1 (c) Uphold the right of consumers to freely choose the LPG brand they

2 want to purchase; and

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

6 dissemination and consumer education campaigns.

7 Sec. 3. Scope and Application. - This Act shali apply to the following:
8 (a) Importation, refining, refilling, transportation, distribution, and

9 marketing of LPG;
10 (b) Manufacture, requalification, exchange, swapping, improvement, or

11 scrappage of LPG pressure vessels; and

12 (c) Safe operations of allLPG products for residential, commercial,

13 industrial, and automotive use, and the entire LPG industry.

14 Sec. 4. Definition o f Terms. - For purposes of this Act, the following terms

15 shall be defined as stated below:

16 (a) Accreditation refers to the formal recognition o f competency given by
17 the Department of Trade and Industry (DTI), through a certificate of
18 accreditation, stating that a manufacturer, re-qualifier, or repairer of

19 LPGpressure vessels has complied with aii the documentary

20 requirements, quality and safety standards, and the specific Philippine
21 National Standards (PNS) prescribing the method of manufacture,
22 requalification, or repair of LPG pressure vessels and other applicable

23 PNS;
24 (b) A ctivity refers to:
25 (i) Refining, manufacturing, importing, exporting, shipping,
26 transporting, hauling, storing, refilling, distributing, marketing,
27 and selling o f LPG for residential, commercial, industrial, or

28 automotive use, and

29 (ii) Manufacturing, importing, distributing, selling, re-qualifying,

30 repairing, and scrappage o f LPG pressure vessels, authorized LPG

31 seals, and other ancillary equipment;
1 (c) Alteration refers to any act of converting, transforming, or resizing of

2 local or imported LPG pressure vessels from its original size or design

3 including replacement or removal of existing registered brand owner's

4 markings, grinding, flattening, application of putty, replacement of

5 collar, revalving, unauthorized repainting, replacement of foot-rings, or

6 re-labeling;

7 (d) Ancillary equipment refe'cs to parts, devices, and accessories necessary

8 for the safe and proper operation of an LPG pressure vessel such as

9 valves, hoses, and regulators;

10 (e) Authorized LPG seal refers to the security cover placed on the gas

11 outlet of an LPG cylinder, canister, or cartridge, of the type that

12 necessitates breaking or destroying before LPG can flow out of the

13 cylinder, canister, or cartridge. It shall have a distinctive design,

14 symbol, emblem, or mark, identifying the owner of the LPG cylinder,

15 canister, or cartridge;

16 (f) Auto-LPG refers to LPG intended to fuel, propel, or otherwise provide

17 propulsion to motor vehicles;

18 (g) Auto-LPG dispensing station refers to a facility or business

19 establishment, which sells auto-LPG directly to motor vehicle users. It

20 may be a standalone establishment, or located within or operated with

21 a retail outlet;

22 (h) Brand owner refers to a natural or juridical person owning a duly

23 registered brand name, logo, mark, or distinction registered with the

24 Intellectual Property Office of the Philippines;

25 (i) Bulk consumer refers to a duly-authorized natural or judicial person

26 who purchases LPG at large quantities for its own use, requires bulk

27 storage of LPG, and does not, in any way, engage in the distribution or

28 retail of LPG to the end consumer;

29 (j) Bulk supplier refers to a duly-authorized natural or juridical person who

30 engages In the sale or distribution of LPG in large quantities and

31 requires bulk storage of LPG;

 1 (k ) Certificate o f accreditation refers to the written document issued by the

2 DTI stating that a manufacturer, re-qualifier, or repairer of LPG has

3 complied with all the requirements and standards necessary to operate

4 as such;

5 (1 ) Certificate o f conformity refers to the written document issued by the

6 DTI stating that the LPG pressure vessel has complied with existing

7 PNS and other applicable laws, rules, and regulations;

8 (m ) Certificate o f non-coverage (CNC) refers to a written document issued

9 by the DOE attesting to the fact that an LPG industry participant is a

10 bulk consumer, and is not engaged in any other activity that will

11 require a license to operate;

12 (n) Container refers to any pressure vessel filled with auto-LPG

13 permanently attached to, and is an inherent and integral part of a

14 motor vehicle;

15 (0 ) Cross-filling refers to the filling of LPG cylinders by a natural or juridical

16 person other than the brand owner or its duly authorized refiller;

17 (P) Cylinder, canister, o r cartridge owner refers to a natural or juridical

18 person whose brand, mark, trade name, or business name is

19 embossed, engraved, or otherwise permanently indicated on the LPG

20 cylinder, canister, or cartridge in the manner prescribed by the DTI;

21 (q ) Cylinder refers to a portable and refillable pressure vessel, with water

22 capacity of not less than one hundred fifty (150) liters, designed for

23 the storage of LPG;

24 (r) Deaier refers to any person involved in the trading or sale of LPG

25 cylinders to retail outlets or directly to end consumers;

26 (s ) Defective pressure vessels refer to pressure vessel that are uncertified,

27 damaged, or dilapidated due to the existence of corrosion or pitting,

28 dents, cuts, gouges, digs, bulges, leaks, and similar defects rendering

29 such pressure vessel unsafe, injurious, or dangerous for distribution or

30 use, and creating a substantial risk of injury to the general public;

1 (t) End consumer refers to any person, who purchases LPG for their own

2 consumption. For purposes of this Act, an end consumer shall not

3 include a bulk consumer;

4 (u) Hauler refers to a natural or juridical person involved in the

5 transportation, distribution, and delivery of LPG cylinders and canisters

6 through the use of authorized vehicles;

7 (v) Im porter refers to a natural or juridical person engaged in the

8 importation of LPG for processing, sale, or own use;

9 (w) License to operate refers to a certification issued by the DOE that a

10 natural or juridical person intending to engage in business for a specific

11 activity as an LPG industry participant has complied with all the

12 documentary requirements, and quality and safety standards, rules,

13 and regulations prescribed by the DOE and other pertinent government

14 agencies for such an activity;

15 (x) LPG refers to liquefied petroleum gas which consists of commercial

16 propane gas or commercial butane gas, or a mixture of both gases,

17 with properties conforming to the standards set forth in the PNS and

18 other applicable laws, rules, and regulations;

19 (y) LPG canister o r cartridge refers to a portable and non-refillable

20 pressure vessel, with a water capacity of less than one (1) liter,

21 designed for the storage of LPG or a mixture of gases;

22 (z) LPG industry participants refers to natural or juridical persons engaged

23 in the activities defined in Section 4(b) of this Act;

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

25 cylinder designed for the storage of LPG;

26 (bb) Marketer refers to a natural or juridical person engaged in the sale of

27 LPG under its own brand name, in bulk, or as a retail outlet;

28 (cc) Permanent mark refer to the embossed trade or brand name of the

29 brand owner which appears on the LPG cylinder, as prescribed by the

30 DTI;

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

32 such as a tanker, lorry, or similar installations;

1 (ee) PNS refers to the standards promulgated by the DTI Bureau of

2 Philippine Standards (BPS) pertaining to product specifications, test

3 methods, terminologies, procedures, or practices pursuant to Republic

4 Act No. 4109, otherwise known as An Act to Convert the Division of

5 Standards Under the Bureau of Commerce into a Bureau of Standards,

6 to Provide for the Standardization and/or Inspection of Products and

7 Imports of the Phiiippines and for Other Purposes, and other applicable

8 laws, rules, and regulations;

9 (ff) Qualified service person refers to an individual who has successfully

10 completed an approved training course for LPG service persons in a

11 training school duly recognized and accredited by the Philippine

12 government;

13 (gg) /?e/7//errefers to a cylinder, canister, or cartridge owner engaged in the

14 business of refilling its own LPG cylinder, canister, or cartridge. It shall

15 also refer to a natural or juridical person duly authorized by the

16 cylinder, canister, or cartridge owner to engage in the business of

17 refiliing LPG cylinders, canisters, or cartridges on its behalf;

18 (hh) Refilling p la n t refers to a facility with LPG bulk storage and refilling

19 equipment, used for refiliing LPG into cyiinders;

20 (ii) /?e/7/?er refers to a naturai or juridical person who refines LPG through

21 distillation, conversion, and treatment of crude oil and other naturally

22 occurring petroleum hydrocarbons;

23 Qj) Re-quaiification refers to the process by which an LPG pressure vessel

24 is inspected, tested, and re-evaluated in accordance with the

25 prescribed specifications and standards to determine its viability for

26 continued use, distribution, repair, or scrappage, whichever may be

27 applicable;

28 (kk) Re-quaiifier refers to a person engaged in the business of re-

29 qualification duly accredited by the DTI;

30 (II) Repair refers to the removal and replacement o f parts of LPG pressure

31 vessels, or the performance of any other corrective and restorative

32 measures in accordance with the prescribed method under the PNS,

1 with the end goal of restoring the viability and fitness of LPG pressure

2 vessels for public use;

3 (mm) Repairer to a natural or juridical person engaged in the business

4 of repair duly accredited by the DTI;

5 (nn) Retail outlet refers to a natural or juridical person involved in the sale
6 of LPG cylinders directly to end consumers;
7 (oo) Scrappage refers to the destruction of defective LPG pressure vessels
8 declared by a re-qualifier to be unfit for use. The destruction may be

9 done by cutting the pressure vessel at various parts or by flattening to

10 render the pressure vessel unusable or unrecyclable;

11 (pp) Substandard refers to any pressure vessel which does not conform
12 with the applicable PNS;
13 (qq) Tare weight refers to the net weight of an LPG pressure vessel
14 excluding its contents as engraved in the collar and painted in the body
15 thereof. It shall be expressed in kilograms in accordance with
16 guidelines issue by the DTI; and
17 (rr) Uncertified pressure vessel refers to an LPG pressure vessel that does

18 not comply with the PNS.

19

20 CHAPTER I I
21 ROLE OF GOVERNMENT AGENCIES
22 Sec. 5. Lead Agency. - The DOE shall be the primary government agency
23 responsible for the implementation and enforcement of this Act. The DOE shall
24 regulate, supervise, and monitor the LPG industry and all LPG industry participants
25 to ensure compliance with the health, safety, security, and environmental standards

26 and the applicable PNS.

27 Sec. 6. Powers and Functions o f the Department o f Energy. - In addition to

28 its mandate under Republic Act No. 7638, otherwise known as the Department of

29 Energy Act o f 1992, and Republic Act No. 8479, otherwise known as the
30 Downstream Oil Deregulation Act, the DOE shall have the following powers and
31 functions:
1 (a) Implement and ensure compliance with the quality and safety

2 standards prescribed in the PNS for:

3 (i) Refining plants, refilling plants, depots, storage areas,

4 transportation facilities, retail outlets, and other related facilities

5 or premises of LPG industry participants, and

6 (ii) LPG pressure vessels in circulation, whether filled or unfilled,

7 which are for distribution and sale to dealers, retail outlets, and

8 end consumers;

9 (b) Issue the following:

10 (i) Licenses to operate and certificates of non-coverage for

11 qualified LPG industry participants, and suspend or revoke

12 these, after due notice and hearing, pursuant to Sections 18 and

13 19, and Chapter IX of this Act,

14 (ii) Closure or cease and desist orders, after due notice and

15 hearing, to any concerned LPG industry participant found to

16 have committed any of the prohibited acts under Chapter IX of

17 this Act,

18 (iii) Guidelines for the following:

19 (1) Disposal of LPG and LPG pressure vessels together with

20 the Department of Energy and Natural Resources

21 (DENR),

22 (2) Motor vehicles used in the transportation of LPG in bulk,

23 LPG from one LPG industry participant to another, and

24 filled LPG cylinders, canisters, and cartridges to end

25 consumers, and the registration thereof, together with

26 the DOTr, pursuant to Section 28 of this Act,

27 (3) Accreditation of drivers and attendants for LPG delivery

28 vehicles upon prior consultation with LPG industry

29 participants and other government agencies concerned,

30 (4) Installation of signage at storage facilities of bulk

31 suppliers and bulk consumers, and

1 (5) Installation of LPG appliances and devices approved by

2 the DTI: Provided, That such appliances and devices shall

3 be installed only by qualified service persons;

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

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

6 requalification pursuant to Section 7 of this Act;

7 (e) Investigate motu proprio or upon report of any person, impose and

8 collect fines and penalties, initiate and resolve the necessary

9 administration action, or initiate the necessary criminal action against

10 the responsible persons for the following:

11 (i) Any violation of this Act by any LPG industry participant, and

12 (11) Incidents of injury or damage to person or property, caused by

13 or attributable to the improper refilling, storage, transport,

14 distribution, handling, manufacturing, re-qualifying, repairing of

15 LPG pressure vessels, and improper refining, dispensing, and

16 use of LPG;

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

18 (i) LPG seals not compliant with standards, rules, and regulations

19 including those in illegal possession or use, and

20 (ii) Substandard, defective, unsafe, injurious or dangerous LPG

21 products, underfilled, illegally refilled, or defective pressure

22 vessels, ancillary equipment, auto-LPG vehicles, and other

23 appurtenances that are found in violation of the provisions of

24 this Act and pursuant to Section 25 thereof;

25 (g) Exercise visitorial powers to ensure the effective implementation of this

26 Act, which includes the power to scrutinize the records of LPG industry

27 participants and inspect their premises, filled LPG pressure vessels,

28 LPG seals, and ancillary equipment;

29 (h) Require LPG industry participants to submit written or electronic forms

30 or reports as it may deem necessary and reasonable pursuant to

31 Section 24 of this Act,

1 (i) Create, maintain, and regularly update a central database of LPG

2 industry participants and an inventory of existing and projected LPG

3 supply levels pursuant to Section 25 of this Act;

4 (j) Regularly publish in a newspaper of general circulation the names of

5 LPG industry participants found liable for prohibited acts pursuant to

6 Chapter IX of this Act;

7 (k) Determine the strategy, rules, regulations, and procedure for the

8 improvement of LPG pressure vessels already in the market at the time

9 of effectivity of this Act, upon consultation with LPG industry

10 participants and other concerned government agencies, with the end in

11 view of ensuring the safety of end consumers;

12 ( l) Undertake with DTI and DILG information, education, and

13 communication activities on health, safety, security, environmental,

14 and quality standards for LPG, LPG pressure vessels, auto-LPG

15 vehicles, ancillary equipment, other appurtenances, and motor vehicles

16 transporting LPG to enhance awareness among end customers, local

17 government units (LGUs), and the Philippine National Police (PNP);

18 (m) Conduct research and development with the Department of Science

19 and Technology towards LPG pressure vessel improvement and more

20 efficient methods of providing safe, clean, and hazard-free LPG to end

21 consumers; and

22 (n) Exercise such other powers and functions as may be necessary or

23 incidental to attaining the objectives of this Act.

24 Sec. 7. Powers and Functions o f the Department o f Trade and Industry (DTI).

25 - In addition to its mandate under existing laws, the DTI shall have the following

26 powers and functions:

27 (a) Develop, formulate, promulgate, review and revise, as may be

28 necessary, the PNS for LPG, LPG pressure vessels, and other ancillary

29 equipment;

30 (b) Accredit manufacturers, re-qualifiers, and repairers of LPG pressure

31 vessels through the issuance of a certificate of accreditation;

32 (c) Determine frequency of re-quaiification of LPG pressure vessels;

10
1 (d) Inspect, evaluate, and confirm compliance with the PNS and fitness for

2 sale and public distribution of local and imported LPG pressure vessels

3 and ancillary equipment, and re-qualified LPG pressure vessels through

4 the issuance of a certificate of conformity;

5 (e) Grant and revoke, if warranted, the certificates of accreditation and

6 conformity of LPG industry participants and their respective LPG

7 pressure vessels pursuant to Section 20 of this Act; and

8 (f) Undertake with the DOE and the Department of Interior and Local

9 Government (DILG) information, education, and communication

10 activities on health, safety, security, environmental, and quality

11 standards for LPG, LPG pressure vessels, auto-LPG vehicles, ancillary

12 equipment, other appurtenances, and motor vehicles transporting LPG

13 to enhance awareness among end customers, LGUs, and the PNP.

14 Sec. 8. Powers and Functions o f the Department o f Interior and Locai

15 Government - In addition to its mandate under existing laws, the DILG shall have

16 the following powers and functions:

17 (g) Issue the appropriate guidelines and regulations governing the fire

18 safety of LPG facilities through the Bureau of Fire Protection (BFP);

19 (h) Undertake with DTI and DILG information, education, and

20 communication activities on health, safety, security, environmental,

21 and quality standards for LPG, LPG pressure vessels, auto-LPG

22 vehicles, ancillary equipment, other appurtenances, and motor vehicles

23 transporting LPG to enhance awareness among end customers, LGUs,

24 and the PNP;

25 (i) Coordinate and cooperate with the DOE orderly and effective

26 implementation of this Act, rules, regulations, and other issuances

27 promulgated pursuant thereto, together with LGUs and the Philippine

28 National Police (PNP); and

29 (j) Extend all the necessary assistance to the DOE with respect to the

30 enforcement of measures to attain the objectives of this Act.

11
 1 Sec. 9. Powers and Functions o f the Department o f Transportation (DOTr). -

2 In addition to its mandate under existing laws, the DOTr shall issue the appropriate
3 guidelines and regulations governing the following:

4 (a) Auto-LPG motor vehicles;

5 (b) Motor vehicles used in the transportation of LPG in bulk, LPG from one
6 LPG industry participant to another, and LPG filled cylinders, canisters,
7 and cartridges to end consumers, together with the DOE, pursuant to

8 Section 28 of this Act;

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

10 through the Maritime Industry Authority.

11 Sec. 10. Powers and Functions o f Locai Government Units. - In addition to
12 their mandate under existing laws, LGUs shall have the following powers and

13 functions:
14 (a) Assist the DOE in providing an area for impounded LPG pressure

15 vessels;
16 (b) Suspend or revoke, upon due notice and hearing, the business permit
17 or license of an LPG industry participant upon the issuance by the DOE
18 of a notice of suspension or revocation of its license to operate

19 pursuant to Section 6 of this Act;

20 (c) Communicate to DOE the suspension or revocation of the business
21 permit or license of an LPG industry participant within five (5) days

22 from such suspension or revocation;and

23 (d) Issue guidelines on the motor vehicles used in the transportation of
24 LPG in bulk, LPG from one LPG industry participant to another, and
25 LPG in cylinders, canisters, or cartridges to end consumers pursuant to

26 Section 28 of this Act.

27 Sec. 11. Powers and Functions o f the Phiiippine Nationai Poiice. - In addition
28 to their mandate under existing laws, the PNP shall, upon request of the DOE,

29 provide security to life and property in the course of the implementation of this Act:
30 Provided, That only the personnel or unit of the PNP duly deputized by the DOE shall
31 have the authority to enforce this Act: Provided further, That the PNP shall not, on

12
1 its own, conduct LPG inspections without a request from the DOE, or confiscate LPG

2 cylinders unless duly authorized by a warrant issued by the courts.

3 Sec. 12. Powers and Functions o f Other Government Agencies. - In addition

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

8 transportation of LPG in bulk.

10 CHAPTER I I I
11 R R ESPO N SIBILITIES OF LPG INDUSTRY PARTICIPANTS
12 Sec. 13. Bulk Supplier. - In addition to the provisions under this Act, a bulk

13 supplier shall;
14 (a) Ensure adequate and stable supply of LPG in bulk;
15 (b) Make certain that production, storage, receiving, and loading
16 equipment and facilities are in safe operating conditions at all times;
17 (c) Enter into contracts or agreements only with bulk consumers with a
18 valid certificate of non-coverage;
19 (d) Submit a notarized copy of its contract or agreement with a bulk
20 consumer to the DOE within a reasonable period of time from the

21 execution thereof; and

22 (e) Register with DOE all vehicles used for the transportation of LPG in
23 bulk, and comply with guidelines pursuant to Section 28 of this Act.
24 Sec. 14. RefiHer. - In addition to the provisions under this Act,a refiller shall:
25 (a) Fill cylinders, canisters, and cartridges under its own brand and its

26 duly-authorized brands;
27 (b) Fill LPG cylinders, canisters, and cartridges accurately as to the

28 required exact net content of the LPG cylinder;

29 (c) Test the weight and conduct a leak test of every LPG cylinder, canister,

30 and cartridge before it leaves the refilling plant;

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

13
 1 (e) Refuse to refill single-use canisters and cartridges or those not

2 designed or intended for refilling of LPG due to non-compliance with

3 the PNS, or not certified or allowed by the DTI;

4 (f) Observe safe LPG handling practices;

5 (g) Periodically check compliance of dealers and retails outlets with the

6 following:

7 (i) Content requirements of LPG sold; and

8 (ii) Proper calibration and sealing of weighing devices.

9 Sec

10 Act, a brar
11 (a) Carry its own brand of LPG;
12 (b) Ensure the following:

13 (i) Adequate and timely supply of LPG to its dealers, retail outlets,

14 and end consumers, and

IS (ii) Correct weight of LPG filled cylinders, canisters, or cartridges

16 delivered to its dealers, retail outlets, and end consumers;

17 (c) Procure new LPG cylinders, canisters, or cartridges only from reputable

18 and duly licensed LPG cylinder manufacturers;

19 (d) Only utilize LPG cylinders, canisters, or cartridges that comply with the

20 PNS;

21 (e) Emboss all new LPG cylinders, canisters, or cartridges with its

22 registered brand name;

23 (f) Utilize a distinguishable color and marking scheme for all its LPG

24 cylinders, canisters, or cartridges and register the same with the DOE;

25 (g) Register its LPG seal and seal manufacturer with the DOE;

26 (h) Maintain and repair all LPG cylinders, canisters, or cartridges under its

27 own brand name through duly licensed and accredited re-qualifiers and

28 repairers;
29 0) Provide servicing, delivery, and technical assistance to all its dealers,

30 retail outlets, and end consumers;

31 0) Observe safe LPG handling practices;

14
 1 (k) Register with the DOE ail vehicles used for the transportation of its LPG

2 and LPG cylinders, canisters, or cartridges, and comply with guidelines

3 pursuant to Section 28; and

4 ( l) Periodically check compliance of dealers and retail outlets with the

5 following:

6 (i) Content requirements of LPG sold, and

7 (ii) Proper calibration and sealing of weighing devices.

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

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

10 marketer;

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

12 (c) Only sell LPG in cylinders, canisters, or cartridges with anauthorized

13 LPG seal of its refiller or marketer;

14 (d) Provide appropriate weighing devices which shall accurately measure

15 LPG filled cylinders, canisters, or cartridges;

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

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

19 (g) Provide servicing, delivery, and technical assistance for its retail outlets

20 and end consumers;

21 (h) Observe safe LPG handling practices;

22 (i) Register with the DOE all vehicles used for the transport o f LPG and
23 LPG cylinders, canisters, or cartridges, and comply with guidelines
24 pursuant to Section 28 of this Act;
25 Q) Ensure that each filled LPG cylinder, canister, or cartridge conforms
26 with the PNS prior to acceptance from its duly licensed brand owner or
27 marketer; and

28 (k) Periodically check compliance of dealers and retail outlets with the
29 following:
30 (i) Content requirements of LPG sold, and
31 (ii) Proper calibration and sealing of weighing devices.

15
 1 Sec. 17. Retail O utlet - In addition to the provisions under this Act, a retail

2 outlet shall:
3 (a) Sell the brands of LPG filled cylinders, canisters, or cartridges it is
4 authorized to carry by virtue of its contract or agreement with duly
5 licensed brand owners, marketers, or dealers;
6 (b) Only sell LPG in cylinders, canisters, or cartridges with authorized LPG
7 seals of its duly licensed brand owner, marketer, or refiller;
8 (c) Provide appropriate weighing devices which shall accurately measure

9 LPG cylinders, canisters, or cartridges;

10 (d) Request the brand owner, marketer, or dealer for a qualified LPG

11 service person to render services to its end consumers;

12 (e) Install and provide in its respective establishment fire extinguishers,
13 printed materials, and posters showing procedures on how to prevent

14 and react to LPG related accidents;

15 (f) Observe safe LPG handling practices; and
16 (g) Ensure that each LPG filled cylinder, canister, or cartridge conforms

17 with the PNS prior to acceptance from the brand owner, marketer, or

18 dealer.

19

20 CHAPTER IV
21 LICENSES, PERMITS, AND OTHER BUSINESS REQUIREMENTS
22 Sec. 18. License to Operate. - Every LPG industry participant shall secure a

23 license to operate for a specific activity prior to the commencement of construction

24 or commercial operation, and shall publicly post such license to operate in its
25 business establishment or premises. In the event that the LPG industry participant
26 intends to engage in a new activity outside of its current license to operate, it shall
27 secure another license to operate for such new activity. All LPG industry participants

28 shall conduct business only with LPG industry participants with a valid license to

29 operate for the specific activity they are engaged in.

30

31 The DOE shall have the exclusive authority to issue the license to operate. It shall
32 be valid for a period of three (3) years or any such period as may be determined by

16
1 the DOE. The license to operate shall be a mandatory requirem ent fo r the grant or

2 renewal o f any license or perm it issued by the LGU to the LPG industry participant.

4 Any person already engaged in any activity as defined herein, at the tim e o f the

5 effectivity o f this Act, shall obtain a license to operate w ithin six (6) months from the

6 promulgation o f this Act's im plem enting rules and regulations.

7 Sec. 19. Certificate o f Non-Coverage. - A bulk consumer shall secure a

8 certificate o f non-coverage from the DOE in lieu o f a license to operate: Provided,

9 That a bulk consumer who engages in another activity as an LPG industry participant

10 shall be required to secure a license to operate fo r such activity: Provided further,

11 T h a t a certificate o f non-coverage does not exem pt the bulk consumer from

12 compliance w ith quality and safety requirements and standards.

13 Sec. 20. Certificate o f Accreditation and Certificate o f Conformity. - An LPG

14 industry participant who engages in manufacturing, re-qualifying, repairing, or

15 scrapping o f LPG pressure vessels shall obtain a certificate o f accreditation from DTI

16 prior to the com m encem ent construction or commercial operation, and annually

17 thereafter. Any LPG industry participant already engaged in m anufacturing, re­

18 qualification, repair, or scrappage o f LPG pressure vessels at the tim e o f effectivity o f

19 this Act shall secure a certificate o f accreditation from the DTI w ithin six (6) months

20 from the promulgation o f this Act's implem enting rules and regulations.

21

22 A m anufacturer shall obtain a certificate o f conform ity from the DTI fo r the LPG

23 pressure vessels it produces. An LPG industry participant aiready engaged in

24 manufacturing at the tim e o f effectivity o f this Act shall secure a certificate o f

25 conform ity fo r the pressure vessels it has produced and is currently producing within

26 six (6) months from the promulgation o f this Act's implem enting rules and

27 regulations.

28

29 CHAPTER IV

30 AUTO-LPG D ISPENSING STATIONS

31 Sec. 21. Installation o f LPG Containers and Retailing o f auto-LPG. - Any LPG

32 industry participant who installs LPG containers, retrofits m otor vehicles w ith LPG

17
 1 containers, or operates an auto-LPG dispensing station shall be required to comply

2 w ith the requirements, quality and safety standards, rules, and regulations issued by

3 the DOTr pursuant to Section 9 o f this Act and other pertinent governm ent agencies,

5 CHAPTER V

6 OW NERSHIP OF LPG CYLINDERS AND LPG CONTAINERS

7 Sec. 22. Ownership o f LPG Cylinders, Canisters, and Cartridges. - The brand

8 owner whose perm anent mark appears on the LPG cylinder, canister, or cartridge

9 shall be the presumed owner thereof. The presumption applies to LPG cylinders,

10 canisters, o r cartridges subject o f exchange or swapping, or which are in the

11 possession o f an authorized refiller, m arketer, dealer, retail outlet, or re-qualifier, or

12 such other person duly authorized by the brand owner.

13

14 The brand owner shall have the obligation to ensure th a t all o f its LPG cylinders,

15 canisters, o r cartridges comply w ith all the required quality and safety standards,

16 rules, and regulations before they are released fo r distribution: Provided, That

17 receipt by the DOE o f a verified notice or report from the brand owner regarding any

18 lost, stolen, or missing LPG cylinder, canister, or cartridge shall prima facie relieve

19 the brand owner o f the obligation to ensure the quality and safety o f such LPG

20 cylinder, canister, or cartridge.

21 Sec. 23. Ownership o f LPG Containers. - An LPG container shall be

22 permanently installed inside the m otor vehicle, and shall be an inherent and integral

23 part o f the vehicle. The ownership o f the LPG container shall be w ith the owner of

24 the motor vehicle to which the LPG container is permanently installed.

25

26 CHAPTER V I

27 M O N ITO R IN G AND ENFORCEMENT MECHANISMS

28 Sec. 24. Reports and Disclosures to the DOE. - In requiring LPG industry

29 participants to subm it w ritte n or electronic form s or reports pursuant to Section 6 of

30 this Act, the DOE shall be prohibited from sharing, disclosing, or making available to

31 the public any inform ation, docum ent, plan, and report constituting trade secrets.

18
 1 proprietary data, and other legitim ate commercial information which are confidential

2 or privileged in nature.

3 Sec. 25. Central Database ofLPG Industry Participants. - The central database

4 created by DOE pursuant to Section 6 o f this Act shall be updated on a monthly

5 basis. I t shall include the following inform ation:

6 (a) Corporate, business, or trade name o f the LPG industry participant;

7 (b) Registered brand name or logo fo r LPG, LPG pressure vessels, facilities,

8 and equipm ent;

9 (c) Contractual agreements w ith other LPG industry participants;

10 (d) List o f lost, stolen, and missing LPG cylinders;

11 (e) Violations com m itted and incidents relating to such violations; and

12 (f) Other relevant inform ation as may be determined by the DOE.

13

14 CHAPTER V I I

15 DECLARATION OF LPG CYLINDER AS DEFECTIVE

16 Sec. 26. Declaration o f LPG Cylinder, Canister, o r Cartridge as Defective. -

17 When the DOE finds, m otu proprio or upon complaint o f any person, th a t an LPG

18 cylinder, canister, or cartridge is uncertified, defective, injurious, unsafe, dangerous,

19 or substandard, it shall, after due notice, issue the appropriate order for its

20 immediate confiscation, recall, seizure, im poundment, or prohibition from public sale

21 or distribution. The concerned LPG cylinder, canister, or cartridge owner shall be

22 afforded an opportunity to be heard from the issuance o f such order, fo r the

23 purpose of determ ining the propriety of the confiscation, recall, seizure,

24 im poundment, or prohibition o f the LPG cylinders, canisters, or cartridges.

25

26 The DOE shall term inate the proceedings and make a final determ ination on whether

27 the LPG cylinder, canister, or cartridge is uncertified, defective, injurious, unsafe,

28 dangerous, o r substandard w ithin th irty (30) calendar days from the issuance o f the

29 order fo r confiscation, recall, seizure, im poundm ent, or prohibition.

30

31 Filled LPG cylinders which are confiscated, recalled, seized, or im pounded and found

32 by the DOE to pose an im m inent th re a t to the public or in danger o f exploding shall

19
 1 be disposed o f w itho u t serving prior notice to the owners thereof. The DOE shall

2 notify the owner o f such fact w ithin five (5) calendar days after such disposition.

3 Sec. 27. LPG in Unauthorized Canisters o r Cartridges. - I t shall be unlawful

4 fo r any person to refill, sell, trade, or distribute LPG in a single-use canister or

5 cartridge not designed or intended fo r LPG, or not in compliance with existing PNS.

7 CHAPTER V I I I

8 TRANSPORT AND CONVEYANCE OF LPG

9 Sec. 28. Transport o f LPG. - All m otor vehicles utilized in the transportation o f

10 LPG and filled LPG cylinders, canisters, and cartridges shall obtain a Certificate o f

11 Road W orthiness from the Land Transportation Office prior to the issuance and

12 renewal o f a license to operate, and shall comply w ith the guidelines o f DOE and

13 DOTr pursuant to Sections 6 and 9 o f this Act.

14

15 An LPG industry participant who transports LPG in bulk, shall only use m otor vehicles

16 th a t have complied w ith the guidelines and m et the requirements prescribed by the

17 DOE, DOTr, DILG-BFP, DPWH, and the concerned LGU.

18

19 An LPG industry participant who transports LPG in cylinders, canisters, and

20 cartridges, to another LPG participant, shall only use m otor vehicles th a t have

21 complied w ith the guidelines and m et the requirem ents prescribed by the DOE,

22 DOTr, and DILG-BFP.

23

24 An LPG industry participant who transports LPG in cylinders, canisters, and

25 cartridges to end consumers, shall only use m otor vehicles th a t have complied with

26 the guidelines and m et the requirem ents prescribed by the DOE, DOTr, DILG - BFP,

27 and the concerned LGU.

28

29 CHAPTER IX

30 PR O H IBITED ACTS

31 Sec. 29. Prohibited Acts. - Any natural or juridical person, w hether an LPG

32 industry participant o r otherwise, shall be prohibited from the following acts:

20
 1 (a) Engaging in an activity w itho u t a valid license to operate;

2 (b) Engaging in an activity as a bulk consumer w ithout a valid certificate o f

3 non-coverage;

4 (c) Manufacturing LPG pressure vessels w ithout a valid certificate of

5 conform ity fo r the LPG pressure vessels;

6 (d) Manufacturing LPG pressure vessels and LPG seals, or re-qualifying,

7 repairing, or scrapping o f LPG pressure vessels w ithout a certificate of

8 accreditation;

9 (e) Transacting w ith, or selling or distributing LPG products, LPG cylinders,

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

11 who does not have a valid license to operate or certificate of

12 accreditation, as the case may be;

13 (f) Im porting used or second-hand LPG pressure vessels w itho u t securing

14 an authority to im port from the DTI;

15 (g) Failing to comply w ith the standards and requirements on:

16 (i) Safety design fo r refining piants, refilling plants, depots, storage

17 areas, transportation facilities, retail outlets, warehouses, and

18 other related facilities or premises o f LPG industry participants,

19 (ii) Safety practices,

20 (iii) Products, and

21 (iv) Weighing devices;

22 (h) Manufacturing o f LPG pressure vessels using substandard materials;

23 (i) Selling and distributing substandard LPG pressure vessels;

24 (j) M anufacturing, sailing, or distributing LPG pressure vessels w ithout the

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

26 LPG pressure vessels m anufacture, requalification, and repair;

27 (k) Selling or distributing refilled single-use canisters or cartridges which

28 have been previously filled w ith butane, or not designed o r intended

29 fo r refilling o f LPG due to non-compliance w ith the PNS, or not certified

30 o r allowed by the DTI;

21
 1 ( l) Selling or distributing LPG filled cylinders, canisters, or cartridges

2 w itho u t a seal, w ith a tam pered, fake, or broken seal, inappropriate or

3 unauthorized seal, or w ith a seal not belonging to the brand owner;

4 (m ) Destroying, tam pering, altering, or modifying LPG pressure vessels

5 through any means such as changing the LPG pressure valve,

6 repainting, and re-labeling: Provided, That this shall not be a

7 prohibited act if it is done by the brand owner;

8 (n) Stamping wrong, misleading, incorrect, or inaccurate information on

9 LPG pressure vessels.

10 (o) Selling or distributing LPG in means, methods, and equipm ent other

11 than w hat is prescribed under this Act;

12 (p) Filling LPG pressure vessels w ith LPG mixed w ith another finished or

13 unfinished petroleum or non-petroleum product, substance, or material

14 resulting in the failure o f the LPG to m eet the required product

15 standards and requirem ents: Provided, That possession of LPG

16 pressure vessels containing adulterated LPG shall be prima facie

17 evidence o f violation o f this provision;

18 (q) Refilling LPG in single-use canisters or cartridges which have been

19 previously filled w ith butane, or not designed or intended fo r refilling of

20 LPG due to non-compliance w ith the PNS, or not certified o r allowed by

21 the DTI;

22 (r) Hauling, loading, transporting, or perm itting the loading and

23 transportation o f LPG cylinders, canisters, or cartridges in quantities

24 greater than the rated capacity o f the m otor vehicle or in such a

25 manner th a t endangers the life and safety o f its passengers or the

26 public;

27 (s) Selling or storing LPG more than the volume prescribed by the DOE;

28 (t) Selling or storing em pty LPG cylinders, canisters, and cartridges in

29 excess o f those allowed by th e DOE, through LPG cylinder swapping

30 and other sim ilar industry practices;

22
 1 (u ) Manufacturing or selling LPG pressure vessels carrying a brand name,

2 logo, mark, or distinction w itho u t the express approval o f the

3 registered brand owner;

4 (V) Selling, exchanging, bartering, distributing, or transferring ownership

5 or possession o f em pty LPG cylinders, canisters, and cartridges to a

6 natural or juridical person other than the brand owner w ithout the

7 consent o f the said brand owner;

8 (w ) Possessing LPG seals, including the seals already used in LPG pressure

9 vessels w itho u t authority from the LPG cylinder, canister, or cartridge

10 owner o r its duly authorized refiller;

11 (X) Filling o f bulk tanks in refilling plants by bulk suppliers other than the

12 owner o f the tanks;

13 (y ) Requiring end consumers to exclusively purchase LPG from a brand

14 owner, m arketer, refiller, dealer, or retail outlet;

15 (z ) Refusing to refund the deposit on the LPG cylinder to any consumer, in

16 the case o f an LPG brand owner and its duly authorized dealer or retail

17 outlet;

18 (aa)

19 (b b )

20 (cc)

21 Section 6 o f this Act; and

22 (d d )

23 records.

24 Sec.

25 persons she

26 (a) The refiller when the net quantity o f LPG contained in an LPG pressure

27 vessel sold, transferred, delivered, or filled is less than the LPG

28 pressure vessel content required a t the filling plant; and

29 (b ) The dealer or retail o u tle t when the net quantity o f LPG in a pressure

30 vessel intentionally sold, transferred, or delivered is less than the

31 required LPG pressure vessel content quantity.

23
 1 A broken, tampered, absent, or removed seal shall be considered prima facie
2 evidence o f underfilling.
3 Sec. 31. Illegal Refilling. - The following acts shall constitute illegal refilling of
4 LPG pressure vessels:
5 (a) Filling LPG pressure vessels with products or substances other than
6 LPG in an effort to achieve the correct net weight;
7 (b) Filling of LPG pressure vessels directly from LPG tank trucks without

8 the use of approved filling machines;

9 (c) Cross-filling;
10 (d) Refilling of LPG from one LPG pressure vessel to another without using

11 the prescribed equipment;

12 (e) Refilling of LPG pressure vessels other than in duly licensed LPG
13 refilling plants;

14 (f) Refilling o f LPG pressure vessels:

15 (i) By a person other than the brand owner or its duly authorized
16 person evidenced by a written contract or similar instrument;
17 (ii) Bearing defaced, tampered, or illegiblemarkingscontrary to the
18 mandatory labeling and stamping requirements under this Act;
19 (iii) Due for repair, re-qualification or scrappage, or are subject to a
20 recall or prohibition order of the DOE;
21 (iv) For end consumers, whether for household or commercial use,

22 by auto-LPG dispensing stations;

23 (g) Refilling o f single-use canisters or cartridges;
24 (h) Refilling o f canister or cartridges, not designed or intended for refilling

25 o f LPG due to non-compliance with the PNS, or not certified or allowed

26 by the DTI;
27 (i) Unauthorized loading of bulk LPG tanks; and
28 (j) Any other filling or refilling of LPG pressure vessels in violation of the
29 requirements and standards under this Act.
30 Sec. 32. Hoarding. - An LPG industry participant who, before a price increase
31 or in times of tight supply, unduly accumulates LPG and LPG products beyond its
32 normal inventory level and unreasonably limits or refuses to dispose of, sell, or

24
 1 distribute LPG or LPG products to the general public, even if the buyer or consumer

2 has the ability to pay in cash fo r the LPG or LPG products shall be liable for

3 hoarding. The determ ination o f the normal inventory level shall be reckoned from

4 the tim e the LPG industry participant started the business. The following conditions

5 shall be prima facie evidence o f hoarding:

6 (a) The LPG industry participant has stocks o f LPGor LPGproducts fifty

7 percent (50% ) higher than its normal inventory capacity; and

8 (b) The LPG industry participant unreasonably lim its, refuses, or fails to

9 sell the same to the general public at the tim e o f discovery o f the

10 stocks.

11 Sec. 33. Penalties. - Any person found in violation o f the following acts shall
12 have the following adm inistrative and criminal penalties:

13 (a) Section 29 (a) and (b):

14 (i) First offense - Fine o f five thousand pesos (P5,000.00) for each

15 day o f operation w ith o u t the required license or certificate,

16 (ii) Second offense - Fine o f ten thousand pesos (P10,000.00) for

17 each day o f operation w itho u t the required license or certificate,

18 and

19 (iii) Third offense - Fine o f tw enty thousand pesos (P20,000.00) for

20 each day o f operation w itho u t the required license or certificate,

21 or in the case o f Section 29 (aa) fo r every pressure vessel

22 im ported, and perm anent disqualification from engaging in any

23 activity as an LPG industry participant;

24 (b) Section 29 (c), (d), (e), and (f):

25 (i) First offense - Fine o f ten thousand pesos (P10,000.00) for

26 every pressure vessel or seal m anufactured, re-qualified,

27 repaired, scrapped, im ported, transacted, sold, or distributed

28 w itho u t a valid license to operate, certificate o f accreditation,

29 certificate o f conform ity, or authority to im port, whichever is

30 applicable, and closure until the required licenses and permits

31 are accomplished.

25
 1 (ii) Second offense - Fine o f tw enty thousand pesos (P20,000.00)

2 fo r every pressure vessel or seal manufactured, re-qualified,

3 repaired, scrapped, im ported, transacted, sold, or distributed

4 w itho u t a valid license to operate, certificate o f accreditation,

5 certificate o f conform ity, or authority to import, whichever is

6 applicable, closure until the required licenses and permits are

7 accomplished, and upon conviction, im prisonm ent o f at least six

8 (6) months but not more than tw o years, and

9 (iii) Third offense - Fine o f th irty thousand (P30,000.00) fo r every

10 pressure vessel or seal manufactured, re-qualified, repaired,

11 scrapped, im ported, transacted, sold, or distributed w ithout a

12 valid license to operate, certificate o f accreditation, certificate o f

13 conform ity, or authority to im port, whichever is applicable,

14 closure, permanent disqualification from engaging in any activity

15 as an LPG industry participant, and upon conviction,

16 im prisonm ent o f at least one (1) year but not more than three

17 (3) years;

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

19 (i) First offense - Fine of three hundred thousand pesos

20 (P300,000.00),

21 (ii) Second offense - Rne of five hundred thousand pesos

22 (P500,000.00), suspension o f license to operate, and upon

23 conviction, im prisonm ent o f at least one (1) year but not more

24 than three (3) years,

25 (iii) Third offense - Fine o f one million pesos (P I,000,000.00),

26 closure, perm anent disqualification from engaging in any activity

27 as an LPG industry participant, and upon conviction,

28 im prisonm ent o f at least three (3) years but not more than six

29 (6) years;

30 (d) Section 29 (g) (iv):

31 (i) First offense - Fine o f ten thousand pesos (P10,000.00),

26
 1 (ii) Second offense - Fine o f tw enty thousand pesos (P20,000.00)/

2 suspension o f license to operate, and

3 (iii) Third offense - Fine o f th irty thousand pesos (P30,000.00),

4 closure, and permanent disqualification from engaging in any

5 activity as an LPG industry participant;

6 (e) Section 29 (h), (i), (j), (k), (I), (m ), (n), (p), and (q)

7 (i) First offense - Fine o f tw enty-five thousand pesos (P25,000.00)

8 fo r every LPG pressure vessel manufactured, sold, distributed,

9 destroyed, tam pered, altered, or modified, and confiscation o f

10 the said LPG pressure vessels,

11 (ii) Second offense - Fine o f fifty thousand pesos (P50,000.00) for

12 every LPG pressure vessel manufactured, sold, distributed,

13 destroyed, tam pered, altered, or modified, confiscation o f the

14 said LPG pressure vessels, suspension o f the license to operate,

15 and upon conviction, im prisonm ent o f a t least one (1) year but

16 not more than three (3) years,

17 (iii) Third offense - Fine of one hundred thousand pesos

18 (P100,000.00) fo r every LPG pressure vessel manufactured,

19 sold, distributed, destroyed, tam pered, altered, or modified,

20 confiscation of the said LPG pressure vessels, closure,

21 perm anent disqualification from engaging in any activity as an

22 LPG industry participant, and upon conviction, im prisonm ent o f

23 at least three (3) years but not more than six (6) years;

24 (f) Section 29 (o): Fine o f one million pesos (P1,000,000.00), closure, and

25 upon conviction, im prisonm ent o f a t least three (3) years but not more

26 than six (6) years;

27 (g) Section 29 (r):

28 (i) First offense - Fine of one hundred thousand pesos

29 (P100,000.00),

30 (ii) Second offense - Fine of tw o hundred thousand pesos

31 (P200,000.00), suspension o f license to operate, and upon

27
 1 conviction, im prisonm ent o f at least six (6) months but not more

2 than tw o (2) years, and

3 (iii) Third offense - Fine of three hundred thousand pesos

4 (P300,000.00), closure, closure, permanent disqualification from

5 engaging in any activity as an LPG industry participant, and

6 upon conviction, im prisonm ent o f at least three (3) years but

7 not more than six (6) years;

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

9 (i) First offense - Fine of one hundred thousand pesos

10 (P100,000.00),

11 (ii) Second offense - Fine o f tw o hundred thousand pesos

12 (P200,000.00), suspension o f the license to operate, and upon

13 conviction, im prisonm ent o f a t least six (6) months but not more

14 than tw o (2) years, and

15 (iii) Third offense - Fine of three hundred thousand pesos

16 (P300,000.00), closure,permanent disqualification from

17 engaging in any activity as an LPG industry participant, and

18 upon conviction, im prisonm ent o f at least three (3) years but

19 not more than six (6) years;

20 (i) Section 29 (u), (v), and (w ):

21 (i) First offense - Fine o f ten thousand pesos (P10,000.00) fo r

22 every LPG pressure vessel or seal manufactured, sold,

23 exchanged, bartered, distributed, transferred ownership or

24 possession of, or possessed, whichever is applicable,

25 (ii) Second offense - Fine o f tw enty thousand pesos (P20,000.00)

26 fo r every LPG pressure vessel or seal manufactured, sold,

27 exchanged, bartered, distributed, transferred ownership or

28 possession of, or possessed, whichever is applicable, suspension

29 o f license to operate, and upon conviction, im prisonm ent o f at

30 least six (6) m onths but not more than tw o (2) years, and

31 (iii) Third offense - Fine o f th irty thousand pesos (P30,000.00) for

32 every LPG pressure vessel or seal manufactured, sold.

28
 1 exchanged, bartered, distributed, transferred ownership or

2 possession of, or possessed, whichever is applicable, closure.

3 permanent disqualification from engaging in any activity as an

4 LPG industry participant, and upon conviction, im prisonment o f

5 at least one (1) year but not more than three (3) years;

6 0) Section 29 (z):

7 ( i) First offense - Fine o f five thousand pesos (P5,000.00) for every

8 LPG cylinder and a w arning.

9 (ii) Second offense - Fine o f ten thousand pesos (P10,000.00) fo r

10 every LPG cylinder and a suspension o f the license to operate.

11 and

12 (iii) Third offense - Fine o f tw enty thousand pesos (P20,000.00) for

13 every LPG cylinder, closure, and permanent disqualification from

14 engaging in any activity as an LPG industry participant;

15 (k ) Section 29 (y) and (aa): Fine o f one million pesos (P1,000,000.00) and

16 upon conviction, im prisonm ent o f at least six (6) months but not more

17 than tw o (2) years. In the event th a t the violator is an LPG industry

18 participant, the adm inistrative penalty w ill include closure and

19 perm anent disqualification from engaging in any activity as an LPG

20 industry participant;

21 (1) Sections 29 (bb) and (cc):

22 ( i) First offense - Fine o f tw e n ty thousand pesos (P20,000.00),

23 (ii) Second offense - Fine o f fifty thousand pesos (P50,000.00),

24 suspension o f its license to operate, and

25 (iii) Third offense - Fine of one hundred thousand pesos

26 (P100,000.00), closure, and permanent disqualification from

27 engaging in any activity as an LPG industry participant;

28 (m ) Section 29 (dd):

29 (i) First offense - Fine of three hundred thousand pesos

30 (P300,000.00),

31 (ii) Second offense - Fine of five hundred thousand pesos

32 (P500,000.00), suspension o f license to operate, and

29
 1 (iii) Third offense - Fine o f one million pesos (P I,000,000.00),

2 closure, and permanent disqualification from engaging in any

3 activity as an LPG industry participant;

4 (n ) Sections 30 and 31:

5 (i) First offense - Fine o f ten thousand pesos (P20,000.00) fo r each

6 underfilled or illegally refilled pressure vessel,

7 (ii) Second offense - Fine o f tw enty thousand pesos (P30,000.00)

8 fo r each underfilled or illegally refilled pressure vessel, and upon

9 conviction, im prisonm ent o f at least six (6) months but not more

10 than tw o years, and

11 (iii) Third Offense - Fine o f th irty thousand pesos (P40,000.00) for

12 each underfilled or illegally refilled pressure vessel, closure,

13 permanent disqualification from engaging in any activity as an

14 LPG industry participant, and upon conviction, im prisonm ent of

15 at least one (1) year but not more than three (3) years.

16 The illegally refilled LPG cylinders in Section 31 (c), (d), (e), (f), (g),

17 (h), and (i) shall be confiscated outright; and

18 (o) Section 32: Fine o f th irty thousand pesos (P30,000) fo r each LPG

19 product beyond its normal inventory capacity, and upon conviction,

20 fine o f not less than one m illion pesos (P1,000,000.00) but not more

21 than ten m illion pesos (P10,000,000.00), permanent disqualification

22 from engaging in any activity as an LPG industry participant, and

23 im prisonm ent o f at least one (1) year but not more than three (3)

24 years.

25 I f the offender is an alien, the person shall be deported immediately,

26 w ith o u t fu rth e r proceedings, a fte r the service o f sentence.

27 Sec. 34. Violations b y Juridical Entities. - I f the violation is com m itted by a

28 corporation, partnership, association or other juridical entity, the penalty of

29 im prisonment shall be imposed on the responsible directors or officers thereof. Any

30 new juridical e n tity form ed by persons or agents o f such persons previously found in

31 violation o f the prohibited acts under this Chapter fo r the the third tim e, shall be

30
1 perm anently disqualified from engaging in any activity as an LPG industry

2 participant.
3 Sec. 35. Suspension, Cessation, and Closure. - Nothing in this Chapter shall
4 preclude th e DOE from ordering the suspension or cessation o f the operation o f the

5 facility, or the closure thereof until such tim e th a t the mandatory requirements or

6 corrective measures directed by the DOE have been met.

7 Sec. 36. Initiation o f administrative action by the DOE. - An administrative

8 action shall be initiated by the DOE through the issuance o f a show cause order to

9 the LPG industry participant, giving the latter the opportunity to explain in w riting

10 w ithin the period prescribed by DOE: Provided, That the entire administrative

11 proceeding shali not exceed sixty (60) calendar days from issuance o f a show cause

12 order to the final resolution by the DOE. The DOE shaii have the discretion to

13 conduct a hearing pertaining to the violation, or to impose an o u trig h t penalty based

14 on the merits o f the w ritten explanation.

15 Sec. 37. Imposition o f preventive suspension order. - During the pendency o f

16 an adm inistrative proceeding, the DOE may suspend the operations o f an LPG

17 industry participant w ithin a maximum period o f sixty (60) calendar days to prevent

18 undue interference on the ongoing investigation and tam pering o f evidence.

19 Sec. 38. Impoundm ent and Disposition o f Impounded evidence. - The DOE
20 and other duly authorized law enforcem ent agencies shali be authorized to impound

21 LPG, LPG products, LPG pressure vessels, ancillary equipm ent, m otor vehicles used

22 in the transportation of LPG and filled LPG pressure vessels, and other

23 appurtenances as evidence o f the violations under this act. The final disposition o f

24 the impounded evidence shall be subject to the final resolution o f the administrative

25 or criminal case, w hichever may be applicable.

26

27 CHAPTER X I
28 FIN A L PROVISIO NS
29 Sec. 39. Sharing o f Fines and Penalties. - The city or m unicipaiity where the

30 principal place o f business o f an LPG industry participant is located shall be allotted a

31 fo rty percent (40% ) share o f the proceeds from fines and penalties collected by the

31
 1 DOE from the concerned LPG industry participant: Provided, th a t the remaining sixty

2 percent (60% ) shall be used by the DOE to im plem ent the provisions o f this act.

3 Sec. 40. Utilization o f LGU Share. - The LGU shall use its share from the fines

4 and penalties collected pursuant to Section 39 o f this Act exclusively for the purpose

5 o f transporting, hauling, storing, decanting, and disposing confiscated LPG, LPG

6 products, pressure vessels, ancillary equipm ent, and other appurtenances.

7 Sec. 41. Implementing Rules and Regulations. - The DOE together w ith the

8 DTT, and in consultation w ith the concerned governm ent agencies and stakeholders,

9 shall promulgate the im plem enting rules and regulations o f this Act w ithin sixty (60)

10 days from its effectivity. All guidelines, regulations, and other issuances mandated

11 to be promulgated in this Act shall be issued w ithin sixty (60) days from the

12 promulgation o f this Act's im plem enting rules and regulations.

13 Sec. 42. Transition Period. - The DOE shall, upon prior consultation w ith the

14 LPG industry participants and other governm ent agencies and taking into account

15 data obtained from LPG industry participants and other sources, determine the

16 appropriate transition period to allow fo r compliance by all LPG industry participants

17 w ith the objectives o f this Act: Provided, That such transition period shall not be

18 beyond six (6) m onths from the effectivity o f this Act's implem enting rules and

19 regulations.

20 Sec. 43. Congressional oversight — The Joint Congressional Energy

21 Commission shall exercise oversight powers over the im plem entation o f this Act.

22 Sec. 44. Construction and Interpretation. - Any doubt in the interpretation of

23 any provision in this Act shall be interpreted in favor o f the interests o f the

24 consumers particularly to ensure access to reasonably priced LPG and the safety o f

25 the consumers and the general public.

26 Sec. 45. Separability Clause. - I f fo r any reason, any chapter, section or

27 provision o f this Act shall be declared unconstitutional, illegal, or invalid, such parts

28 not affected thereby shall remain in full force and effect.

29 Sec. 46. Repealing Clause. - All laws, decrees, executive orders,

30 proclamations and adm inistrative regulations, or parts th e re of inconsistent herewith

31 are hereby repealed or m odified accordingly.

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 Sec. 47. Effectivity Clause. - This Act shall take effect after fifteen (15) days

a fte r its publication in the Official Gazette or in at least tw o (2) newspapers o f

general circulation.

Approved,

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