LPG Industry Regulation Act (Republic Act No. 11592)

(a) Institute reforms in the existing standards of conduct (ec) Safe operations of the entire LPG industry including and codes of practice for the liquefied petroleum gas (LPG) all LPG facilities and the residential, commercial, industrial, industry; and automotive use of LPG. (ob) Ensure the health, safety, security, environmental, SEC. 4. Definition of Terms. — For purposes of this Act, and quality standards for the following: ‘the following terms shall be defined as stated below: (1) Importing, refining, storing, exporting, refilling, {a) Activity refers to: . transportation, distribytion, and marketing of LPG, and - ‘ (1) Importing, refining, storing, ‘ekporting, refilling, (2) Importation, manufacture, requalification, repair, transportation, distribution, and marketing of: LPG for exchange; swapping, improvement, and scrappage of LPG residential, commercial, industrial, or automotive use, and pressure vessels, whichever is applicable; ¢ (2) Importing, manufacturing, distribution, selling, () Promote awareness regarding the health, safety, requalifying, repairing, and scrappage of LPG pressure vessels, security, environmental, and quality standards for the proper whichever is applicable, authorized LPG seals, and other use of LPG, LPG pressure vessels, and ancillary equipment ancillary equipment; x through information dissemination and end-consumer education campaigns; (b) Adulierated LPG refers to the mixing of LPG with any finished or unfinished petroleum product or stock or with (a) Uphold the right of end-consumers to freely choose any non-petroleum substance or material that will result in the trademark or trade name of LPG-filled cylinders they want product quality change or in the failure of LPG to meet the to purchase and improve competition in the LPG industry for required product specifications under the Philippine National the benefit. of end-consumers; and Standard (PNS); ) Be at the forefront of technological innovation, in (c) Ancillary equipment refers to parts, devices, and partnership with public and private stakeholders, by keeping . accessories necessary and indispensable for the safe and proper abreast of and developing homegrown advancements and operation of an LPG pressure vessel such as seals, valves, breakthroughs in the LPG industry. hoses, and regulators; SEC. 3. Scope and Application. — This Act shall apply (@} Auto-LPG refers to LPG intended to fuel, propel, or to the followjng: otherwise provide propulsion to motor vehicles; fa) Importing, refining, storing, exporting, refilling, (e) Auto-LPG container refers to any pressure vessel tapi same transportation, distribution, and marketing of LPG; filled with auto-LPG permanently attached to and is an inherent and integral part of a motor vehicle;

(b) Importation, manufacture, requalification, repair, Ons eatatey Fen aie as elie exchange, swapping, improvement, and scrappage of LPG () Auto-LPG dispensing station refers to a facility or pressure vessels, whichever is applicable; and business establishment, which sells auto-LPG directly to auto-LPG vehicle users. It may be a stand alone establishment, A Dram 4 5 (a) Durable marking refers to a marking of LPG or located within or operated within a liquid petroleum cylinders with water capacity of less than or equal to one (1) products ‘retail outlet; liter and LPG cartridges such as stenciling by using ink or paint, or labelling through other suitable methods. (g) Bulk consumer refers to a duly authorized natural This markmg may be modified but shall remain legible for a limited or juridical person who purchases LPG at large quantaties for its own use, requires bulk storage of LPG, and does not, in period; any way, engage in the distribution or sale of LPG to the (0) End-consumer refers to any person,.who purchases end-consumer; LPG for own consumption. For purposes of this Act, an refers to any duly authorized - end-consumer shall not include a bulk ‘constimer; th) Bulk distributor natural or juridical person who purchases LPG in bulk in (p) Focility refers to LPG refining plants, terminals, tankers, barges, or tank truck trailers from bulk suppliers, refilling plants, bulk depots, cylinder warehouses, and storage and who supplies the same to refillers or bulk consumers; 4 areas and their corresponding logistical requirements such as refers to a duly authorize ized natural or personnel and equipment: (i)i Bulk supplier L juridical person who engages in the sale or distribution of LPG (q) Generic LPG cylinder refers to an LPG cylinder in large quantities and requires bulk storage of LPG; which is already circulating in the marketyprior to the effectivity of this Act, bearing no trademark or trade name §) Centralized LPG piping system refers to a means of embossed, engraved, or otherwise permanently distributing LPG through a closed system of pipelines within indicated thereon; a building from locally installed LPG pressure vessels; () Hauler refers to a duly authoyized natural or (k) Cross-filling refers to the refilling of LPG cylinders person duly authorized by the juridical person involved in the transportation, distribution, and by a natural or juridical delivery of LPG in cylinders and cartridges, and bulk LPG trademark owner as evidenced by a written contract or similar through the use of authorized motor vehicles: instrument; (s) Importer refers to a duly authorized @) Dealer refers to any duly authorized natural or natural or juridical person engaged in the importation of LPG, LPG juridical person engaged in the trading or sale of LPG pressure vessels, or ancillary equipment for processing, sale, cylinders to retail outlets or directly to end-consumers; or own use, whichever is applicable; nade ctive pressure vessel refers to an LPG pressure (t) License to operaie refers to a certification issued by vessel that 2 ancelufed. damaged, or dilapidated due to the or pitting, dents, cuts, gouges, digs, the Department of Energy (DOE) to a natural or juridical existence of corrosion Mate id ea person intending to engage in business for a specific activity bulges, leaks, and similar defects rendering such pressure as an LPG industry participant who has complied with all vessel unsafe, injurious, or dangerous for distribution or use, the documentary requirements, quality and safety standards, and creating a substantial risk of injury to the general public. rules, and regulations prescribed by the DOE and other It also refers to an injuriovs, unsafe, or dangerous LPG pertinent government agencies for such an activity; r pressure vessel; 7 (a) LPG refers to liquefied petroleum gas which consists (cc) LPG Cylinder Improvement Program fund refers to ef commercial propane gas or commercial butane gas, or a the amount set aside by LPG industry participants to defray mixture of both gases, with properties conforming to the the cost of LPG cylinder improvement under the LPG Cylinder standards set forth in the PNS§; Improvement Program; 1 (v) LPG bulk storage tank refers to a refillable pressure (dd) LPG Cylinder Improvement Program refers to a yessel, with water capacity of more than one hundred fifty system that aims to ensure the quality of all LPG cylinders (150) liters, designed for the storage of LPG; in circulation with the goal of protecting the end-consumers, by which: . ' ¢ (w) LPG cartridg> refers to a non-refillable receptacle ~’ having a, water capacity not exceeding. one thousand (1,000) (1) A fund is set aside by LPG industry participants for -milliliter (ml) for receptacles made of metal, and five hundred the improvement of LPG cylinders, (500) ml for receptacles made of synthetic material or glass, containing under pressure a gas or mixture of gases. It shall (2) Trademark owners, dealers, marketers, and retail also refer to an LPG canister or LPG cassette; outlets may avail of this fund whenever they send an LPG cylinder for improvement, and (x) LPG cylinder refers to a transportable and refillable pressure vessel with up to one hundred fifty (150) liters water (3) Within a specific period of time, generic LPG capacity, designed for the storage of LPG; cylinders and LPG cylinders without trademark owners, which are already in circulation in the market, were not illegally fy) LPG cylinder buyback refers to the activity wherein imported, and are not defective, injurious, unsafe, or an LPG cylinder owner purchases LPG-cylinders bearing its dangerous: trademark or trade name from an LPG industry participant as part of the process of LPG cylinder swapping at a price @) May be received by trademark owners, dealers, determined under the LPG Cylinder Exchange and Swapping marketers, and retail outlets, without fear of penalty, and Program; Gi) Shall be requalified and permanently marked with (2) LPG cylinder exchange refers to the purchase by the the trademark or trade name of the trademark owner last in end-consumer of an LPG-filled cylinder using an empty LPG possession of it; cylinder of a different trademark or trade name; (ee) LPG cylinder owner refers to a natural or juridical (aa) LPG Cylinder Exchange and Swapping Program person whose trademark or trade name is embossed, engraved, refers to a system that allows end-consumers to exercise their or otherwise permanently indicated on the LPG cylinder, or freedom of choice in the purchase of LPG-filled cylinders marked through durable marking, if applicable, in the manner through LPG cylinder exchange and LPG cylinder swapping; presenbed by the applicable PNS; (bb) LPG cylinder improvement refers to activities such (ff) LPG cylinder swapping refers to the giving and as repair and requalification’to ensure an LPG cylinder is taking among industry players of LPG cylinders bearing other compliant with all applicable PNS that would render it fit for trademarks or trade names at an accredited LPG cylinder use and circulation; swapping center; 9 ke (gg) LPG cylinder swapping center shall refer to a as prescribed by the applicable PNS, or as may be determined storage facility in a specific locality which serves as the drop by the DOE and the Department of Trade and Industry (DTI) off point of empty LPG cylinders by LPG industry participants in the case of generic LPG cylinders. This marking shall in the LPG Cylinder Exchange and Swapping Program for the remain legible during the lifespan of the LPG cylinder; purpose of LPG cylinder swapping; (oo) Pilferage refers to the theft or unauthorized transfer (hh) LPG Industry Development Pian refers to a of LPG from an LPG pressure vessel to another receptacle; comprehensive plan to ensure existing and projected LPG supply levels will meet demand including concrete ateps to (pp) PNS refers to the standards promulgated by the further develop the industry; Department of Trade and Industry-Bureau: “of Philippine Standards (DTI-BPS) pertaining to product specifications, test / " Gi) “LPG industry, participants refer to natural or methods, terminologies, procedures, or practices pursuant to juridical persons engaged in the activities defined in Section Republic Act No. 4109, otherwise known as “An Act to Convert 4(a) of this, Act; the Division of Standards Under the Bureau of Commerce into a Bureau of Standards, to Provide for the Standardization (jj) LPG pressure vessel refers to an unfired and sealed and/or Inspection of Products and Imports of the Philippines containment for LPG that has internal pressure more than and for Other Purposes”, and other-applicable laws, rules, and 1.03 barg, and designed, fabricated, manufactured, examined, regulations; we and tested in accordance with prescribed standards and codes, such as LPG bulk storage tanks, LPG cylinders, LPG (qq) Qualified service person refers to an individual who cartridges, auto-LPG containers, and other similarly designed has successfully completed an approved training course for LPG and tested containers; . service persons by the DOE, the DTI, and other relevant government agencies as specified in ‘this Act, or an (kk) . LPG seal refers to the protective cover placed on organization duly recognized and accredited by the government; the gas outlet of an LPG cylinder of the type that necessitates breaking or destroying before LPG can flow out of the cylinder. (rr) Refiller refers to a service provider authorized by the It shall have a distinctive design, symbol, emblem, or mark, trademark owner to refill LPG cylinders on the latter's behalf, identifying the LPG cylinder owner; or any trademark owner which refills LPG into its own LPG cylinders; (il) Marketer refers to a duly authorized natural or juridical person engaged in the sale of LPG, whether in bulk (ss) Refilling plant refers to a facility with LPG bulk or in retail, under its own trademark or trade name; storage tanks and refilling equipment, used for refilling LPG into cylinders; (mm) Measuring devices refer to the equipment utilized to determine the weight of LPG cylinders, which are (it) Refiner refers to a duly authorized natural or periodically calibrated and sealed by the concerned government juridical person who refines crude oi] and other naturally agency; occurring petroleum hydrocarbons through distillation, conversion, and treatment; (nn) Permanent marking refers to the marking applied to newly manufactured LPG cylinders by embossing, hard metal stamping, engraving, casting, or other similar methods al id if net ent (uu) Requalification refers to the process by which an (ccc) Tare weight refers to the net weight of an LPG a _ LPG pressure vessel is inspected, tested, and re-evaluated in cylinder excluding its contents as engraved in the collar and Gems hed aS accordance with the prescribed PNS and other accepted codes painted in the body or permanently marked in the body and standards adopted by the DTI as PNS to determine its thereof. It shall be expressed in kilograms or grams in Sep Niestae A AN et viability for continued use, distribution, repair, or scrappage, accordance with the applicable PNS; whichever may be applicable; (ddd) Terminal refers to a facility used to import, receive, (vv) Requalifier refers to a natural or juridical person unload, and load LPG from local or foreign sources. It is or a engaged in the business of requalification duly aiaenmes by equipped with a port, jetty, and other infrastvucture; ae ee the DTI; ‘ ‘ (eee) Trademark owner refers to a duly authorized AR MERELLIE (ww) Repair refers to the removal and replacement of natural or juridical person owning a duly régistered, valid, and parts of LPG pressure vessels, or the performance of any other existing trademark or trade name with the Intellectual correctivé, and restorative measures in accordance with the Property Office of the Philippines pursuant to Republic Act prescribed method under the PNS and other accepted codes No. 8293, otherwise known as “Intellectual Property Code of and standards as adopted by the DTI as PNS, with the end the Philippines”; and goal of restoring the viability and fitness of LPG pressure vessels for public use; (ff) Uncertified pressure vessel refprs to an LPG eee pressure vessel that did not undergo the certification process (xx) Repairer refers to a natural or juridical person of the DTI or is not in accordance with the standard adopted engaged in the business of repair duly certified by the DTI; as PNS by the DTI. ~~ (yy) Retail outlet refers to a duly authorized natural or juridical person engaged in the direct and exclusive trade or CHAPTER II sale of LPG in cylinders to end-consumers whose maximum ROLE OF GOVERNMENT AGENCIES floor stock is determined by the DOE; (22) Scrappage refers to the destruction of defective LPG SEC. 5. Lead Agency. — The DOE shall be the primary cylinders declared by a requalifier or repairer to be unfit for government agency responsible for the implementation and Siro use; enforcement of this Act. The DOE shall regulate, supervise, and monitor the LPG industry and all LPG industry (aaa) Seal manufacturer refers to any duly authorized participants to ensure compliance with the health, safety, natural or juridical person engaged in the production of LPG security, and environmental standards, the applicable PNS, and seals: other accepted codes and standards as adopted by the DTI as ate PNS. (bbb) Substandard pressure vessel refers to any pressure vessel which does not conform with the applicable PNS and SEC. 6. Powers and Functions of the DOE. — In addition does not bear a safety and quality mark from the DTI; to its mandate under Republic Act No. 7638, otherwise known as the “Department of Energy Act of 1992”, and Republic Act No. 8479, otherwise known as the “Downstream Oil Industry a cael ode nem eh i2 13 Deregulation Act of 1998”, the DOE shall have the following Gi) Authorized motor vehicles used in the transportation powers and functions: ny ioe of LPG in bulk, LPG from one LPG industry participant to another, and filled and unfilled LPG pressure vessels to other Prepare the LPG Industry Development Plan, in LPG industry participants and end-consumers, and the tatea) A (a) consultation with public and private stakeholders, which shall registration thereof, together with the Land Transportation be integrated into the Philippine Energy Plan, Office (LTO) and the Bureau of Fire Protection (BFP), pursuant to Section 37 of this Act; (b) Implement and ensure compliance with the quality and safety standards prescribed in the PNS and other accepted (d) Direct LPG trademark, owners to periodically submit codes and standards a& adopted by the DTI as PNS for: * LPG pressure vessels for requalification pursuant to Section 7 of this Act; ' L “ wm Refining plants, refilling plants, depots, atorage areas, were ae transportation facilities, retail outlets, auto-LPG dispensing fe) Convene technical working groups and technical stations, and other related facilities or premises of LPG committees, comprised of public and private stakeholders, that Nit industry participants, shall undertake the promulgation and review of policies, rules, regulations, and guidelines, and the development of standards, sagemeed mph ie CUA (2) LPG, LPG pressure vessels including filled or respectively; x unfilled cylinders in circulation which are for distribution and tr sale to dealers, retail outlets, and end-consumers, and other } Approve and authorize LPG seals of trademark ancillary equipment, and owners and marketers; (3) Centralized LPG piping systems; (g) Investigate motu proprio or upon report of any person, impose and collect fines and penalties, initiate and

(c) Issue and enforce compliance with the following: resolve the necessary administrative action, or initiate the necessary criminal case against the responsible persons for any (1) Licenses to operate for qualified LPG industry violation of this Act by any LPG industry participant, participants. The DOE shall have the power to suspend or pursuant to Chapter XI of this Act; revoke these, after due notice and hearing, for any LPG industry participant found to have committed any of the (h) Confiscate, recall, seize, impound, and prohibit the prohibited acts under Chapter XJ of this Act, following: (2) Clesure or cease and desist orders, after due notice GQ) LPG seals that are noncompliant with standards, and hearing, to any concerned LPG industry participant found rules, and regulations including those in illegal possession or to have committed any of the prohibited acts under Chapter use of such LPG seals, and XI of thie Act, (2) LPG that does not meet the PNS, defective, unsafe, (3) Guidelines for: injurious, dangerous, generic, underfilled, illegally refilled, defective, or substandard LPG pressure vessels in circulation, @) Disposal of LPG, LPG contaminated water, and LPG and ancillary equipment, or those that are found in violation pressure vessels together with the Department of Environment of the provisions of this Act: Provided, That duly requalified and Natural Resources (DENR), and Mamet e ths, ila id I5 generic LPG cylinders already in the market at the time of safety, security, environmental, and quality standards for LPG, PMc the effectivity of this Act which were not illegally imported LPG pressure vessels, auto-LPG vehicles, ancillary equipment, shall only be confiscated, recalled, seized, impounded, and Te and authorized motor vehicles transporting LPG and LPG prohibited after the lapse of the transition period of the LPG pressure vessels to enhance awareness among end-consumers, Cylinder Improvement Program determined by the DOE ewe local government units (LGUs), and the Philippine National pursuant to Section 32 of this Act; Police (PNP); Sean ne Meet PRINS vee Gi) Exercise visitorial powers to ensure the effective 0} Conduct, in collaboration with the Department of implementation of thig Act, which shall include the power to Science and Technology, research and development towards scrutinize the recordsyof LPG industry participants, except. new LPG technologies and LPG pressure vessel improvement trade secrets and proprietary information, and to inspect their and more efficient methods of providing, safe, clean, and premised, LPG seals, ancillary equipment, and filled and hazard-free LPG to end-consumers; and * / unfilled LPG pressure vessels, including those in transit, which are for distribution and sale to dealers, retail outlets, and (p) Exercise such other powers and functions as may be end-consumers: Provided, That trade secrets and proprietary necessary or incidental to attaining the objectives of this Act. information shall be defined in this Act’s implementing rules and regulations; SEC. 7. Powers and Functions of the DTI. — In addition to its mandate under existing laws such ag-Republic Act G) Require LPG industry participants to submit written No. 4109, the DTI shall have the following powers and or electronic forms or reports as it may deem necessary and functions: reasonable pursuant to Section 33 of this Act; (a) In collaboration with the DOE and related ‘&) Create, maintain, and regularly update a central stakeholders, develop, formulate, promulgate, review and revise, database of LPG industry participants and an inventory of as may be necessary, the PNS for: existing and projected LPG supply levels pursuant to Section 34 of this Act; (1) Refining plants, refilling plants, depots, storage areas, transportation facilities, retail outlets, installation of auto-LPG @) Regularly publish in a newspaper of general containers, retrofitting of motor vehicles with auto-LPG circulation or the DOE website the list of LPG industry containers, auto-LPG conversion shops, auto-LPG dispensing participants whose licenses to operate have been revoked; stations, and other related facilities of LPG industry participants, (m) Fgrmulate and publish, together with the DTI, the guidelines, rules, and regulations for the LPG Cylinder (2) LPG, LPG pressure vessels including LPG cylinders Exchange and Swapping Program, and the LPG Cylinder oom, in circulation, whether filled or unfilled, which are for Improvement Program pursuant to Sections 31 and 32 of this distribution and sale to dealers, retail outlets, and Act; end-consumers, and other ancillary equipment, and (n} Undertake with the DTI, the Department of the (8) Centralized LPG piping system; Interior and Local Government (DILG), and the BFP information, education, and communication activities on health, (b} Determine methods of requalification of LPG pressure veesels and accredit requalifiers of LPG pressure vessels, if applicable, through the issuance of the necessary certificate; Ne tate vated 16 i? (c) Certify manufacturers, importers, and repairers of SEC. 9. Powers and Functions of the BFP. — In addition LPG pressure vessels and auto-LPG conversion shops pursuant to its mandate under existing laws, the BFP shall strictly ‘to its powers under Republic Act No. 4109: implement the provisions of Republic Act No. 9514, otherwise ers known as the “Fire Code of the Philippines of 2008”, and its

(d) Determine the frequency of requalification of LPG eee revised implementing rules and regulations, on the ‘pressure vessels, if applicable; manufacturing, storage, handling, use, and transportation of eee a LPG including fire safety devices and the issuance of all fe) Inspect, evaluate, and confirm compliance with the relevant permits and certificates: Provided, That the guidelines PNS and other accepted codes and standards adopted by the for the transportation of LPG and LPG pressure vessels shall DTI as PNS, and fitness for sale and public distribution of be formulated together with the DOF and.LTO, pursuant to LPG pressure vessels and ancillary equipment through the Section 37 of this Act. The BFP shall also undertake with t Sa RERAIWD LCDI Ty 9 Tet Jssuance'of the necessary licenses and certificates | pursuant to the DOE, DTI, and DILG information, education, and “its powers under Republic Act No. 4109; communication activities pursuant to Section 6 of this Act. &) Grant and revoke, if warranted, the issued licenses The BFP shall issue appropriate guidelines and and certificates of LPG industry participants and their regulations governing the fire safety of LPG facilities and awe respective LPG pressure vessels pursuant to Section 26 of this safety measures in the manufacture, storage, handling, use, Act; and ‘ and transportation of LPG. we Paat fg) Undertake with the DOE, DILG, and BFP SEC. 10. Powers and Functions of the LTO and the information, education, and communication activities pursuant Land Transportation Franchising and Regulatory Board A3rLiak Putas to Section 6 of this Act. (LTFRB). — In addition to their mandates under existing laws, the LTO and LTFRB, whichever is applicable, shall issue the SEC. 8. Powers and Functions of the DILG. — In addition appropriate guidelines and regulations governing the following: to its mandate under existing laws, the DILG shall have the following powers and functions: (a) Auto-LPG motor vehicles including those utilized as public utihty vehicles, related facilities, and inspection centers; {a) Undertake with the DOE, DTI, and BFP information, and education, and communication activities pursuant to Section 6 of this Act; (b) Authorized motor vehicles used in the transportation of LPG in bulk, LPG from one LPG industry participant to (b) Coordinate and cooperate with the DOE for the another, and filled and unfilled LPG pressure vessels to other orderly and effective implementation of this Act, rules, LPG industry participants and end-consumers, together with regulations, and other issuances promulgated pursuant thereto, the DOE and the BFP, pursuant to Section 37 of this Act. “ty including LGU permitting and monitoring, together with the LGUs, BFP, and PNP; and SEC. 11. Powers and Functions of Maritime Industry Authority (MARINA). — In addition to its mandate under (<) Extend all the necessary assistance to the DOE with existing laws, the MARINA shall, upon coordination with the eae respect to the enforcement of measures to attain the objectives DOE and in consultation with public and private stakeholders, of this Act. issue the appropriate guidelines and regulations governing sania Uhh at "hm ae 18 i9 marine vessels transporting LPG and filled and unfilled LPG CHAPTER III pressure vessels. RESPONSIBILITIES OF LPG INDUSTRY PARTICIPANTS a Une SEC. 12. Powers and Functions of LGUs. — In addition pe a tment fo their mandate under existing laws, LGUs shall have the SEC. 15. LPG Industry Participants. - In addition to the following powers and functions: provisions under this Act, an LPG industry participant shall: Vinnieas Are fo) Assist the DOE in identifying LPG industry {a} Ensure the following it imports, procures, utilizes, Wie EM participants in violation of the provisions of this Act; manufactures, constructs, operates, ang sells are compliant ite Eau altraoMale mere; fone OEOe X “ . with the PNS, standards adopted by the DTI as PNS, and (b} ,Assist the DOE in identifying an area for-impounded other standards, requirements, and guidelines ‘promulgated " LPG pressure vessels, motor vehicles, and other associated pursuant to this Act: equipment; eT t (1) LPG, LPG pressure vessels, ancillary equipment, (c) Coordinate with the DOE in the transporting, facilities, auto-LPG conversion shops, auto-LPG dispensing hauling, storing, decanting, and disposing of confiscated LPG, stations, and centralized LPG piping systems, and LPG pressure vessels, and ancillary equipment; (2) Marine vessels and motor vehicles used to transport (d) Suspend or revoke, upon due notice and hearing, the LPG and filled and ‘unfilled' LPG pressure vessels which should business permit or license of an LPG industry participant upon —— be in safe operating condition at all times; the issuance by the DOE of a notice of suspension or révocation of its license to operate pursuant to Section 6 of this Act; and (b} Observe safe LPG handling practices; fe) Communicate to the DOE the suspension or (c) Ensure the drivers and attendante of the motor revocation of the business permit or license of an LPG industry vehicles it utilizes to transport LPG and filled and unfilled participant within five (5) days from such suspension or LPG pressure vessels have been oriented on their proper revocation. handling; and SEC. 13. Powers and Functions of the PNP and Other (d) Enter into contracts or agreements only with LPG Law Enforcement Agencies. — In addition to their mandates industry participants registered with the DOE or with a valid under existing laws, the PNP and other law enforcement license to operate, whichever is applicable. agencies shall assist the DOE, upon its request, in the exercise Sere of its powers pursuant to Section 6 of this Act including SEC. 16. Bulk Supplier. - In addition to the provisions inspections of LPG facilities and motor vehicles transporting under this Act, a bulk supplier shall: LPG in bulk or in LPG cylinders and cartridges. r (a) Ensure adequate and stable supply of LPG in bulk; SEC. 14. Powers and Functions of the DENR. —- In an HRT addition to its mandate undet existing laws, the DENR shall AR RE issue, together with the DOE, guidelines for the disposal of b) Submit a certification to the DOE on the contracts LPG, LPG contaminated water, and LPG pressure vessels. or agreements it has entered inte with bulk consumers within r ET SATS. a reasonable period of time from the execution thereof. PNA ll RSA ate chee 20 2i SEC. 17. Bulk Distributor. — In addition to the @) Refill only LPG cylinders that comply with the PNS ne provisions under this Act, a bulk distributor shall: and bear the necessary safety and quality marks, whichever RA is applicable; (a) Ensure adequate and stable supply of LPG in bulk; aR (e) Refuse to refill the following: ; (b} Submit a certification to the DOE on the contracts br agreements it has entered into with LPG industry (1) LPG cartridges, and participants Within a reasonable period of time from the execution thereof, and. (2) Cylinders not designed or intended for refilling of LPG due to noncompliance with the PNS, of not certified or XN “t (c) Ensure the periodic testing and requalification of allowed by the DTI and do not bear the necessaty safety and LPG pressure vessels and periodic calibration of its measuring quality marks, whichever is applicable; and / devices by the concerned government agency or duly recognized testing facility. (} Periodically check compliance of dealers and retail outlets with the following: SEC. 18. Hauler. — In addition to the provisions under this Act, a hauler shall: () Content requirements of LPG sold, and ye (a} Submit to the DOE a lst of all authorized motor (2) Proper calibration and sealing of measuring devices. vehicles utilized for the transport of filled and unfilled LPG cylinders or cartridges, and comply with the safety standards, SEC. 20. Trademark Owner or Marketer. — In addition requirements, and guidelines for such pursuant to Section 37 to the provisions under this Act, a trademark owner or of this Act; and 4 marketer shall: ° (6) Submit a certification to the DOE on the contracts (a) Carry its own trademark or trade name of LPG or agreements it has entered into with LPG industry preseure vessel; participants within a reasonable period of time from the execution thereof. (b) Ensure the following: SEC. 19. Refiller. — In addition to the provisions under (J) Adequate and timely supply of LPG to its dealers, this Act, a refiller shall: retail outlets, and end-consumers, and he (a) Fill LPG cylinders under its own trademark or trade (2) Correct weight of LPG-filled cylinders or cartridges name or its duly authorized trademarks or trade names; delivered to its dealers, retail outlets, and end-consumers; wan (>) Fill LPG cylinders accurately as to the required exact AT Pe {c) Utilize a distinguishable color and marking scheme aac net content of the LPG cylinder; for all of its LPG pressure vessels and register the same with dees” = la the DOE; (© Test the weight and conduct a leak test of every Ao ae * wha LPG cylinder before it leaves the refilling plant: (d} Register its LPG seal and seal manufacturer with ests the DOE; i Phe alltel ora erm ens RA 22 23 Ae SAKAI he tiie! OAT hem ) Maintain and repair all LPG pressure vessels under SEC. 22. Retail Outlet. — In addition to the provisions sore t ‘ its own trademark or trade name through duly licensed under this Act, a retail outlet shall: manufacturers and repairers, and accredited requalifiers; (a) Sell only the trademarks or trade names of () Provide servicing, delivery, and technical assistance LPG-filled cylinders or cartridges it is authorized to carry by \ to all its dealers, retail outlets, and end-consumers; and virtue of its contract or agreement with duly licensed trademark owners, marketers, or dealers; 1 (g) Périodically check compliance of dealers and retail outlets with the folowing: (b) Sell only LPG in cylinders with authorized LPG x ° o seals of ita duly licensed trademark owner, marketer, or q) Content requirements of LPG sold, and refiller; %, « } \ a (2). Proper calibration and sealing of measuring devices. (c) Provide appropriate measuring devices which shall & accurately measure LPG cylinders or cartridgés; and SEC. 21. Dealer. — In addition to the provisions under this Act, a dealer shall: (a) Request the trademark owner, marketer, or dealer for a qualified service person to render services to its (a) Carry only the trademark or trade name of LPG of end-consumers. we a refiller or marketer with whom it has a contract or agreement; CHAPTER [FV (&) Sell only LPG in cylinders with an authorized LPG REGISTRATION, LICENSES, AND PERMITS * seal of its refiller or marketer; Asre SEC. 23. Registration Prior to Commencement of (©) Provide appropriate measuring devices which shall accurately measure LPG-filled cylinders; Construction. — In addition to other permits under existing ea A a laws, bulk suppliers, refillers, and bulk consumers shall {d) Ensure the correct weight of LPG-filled cylinders or register with the DOE before commencement of construction of terminals and refilling plants. cartridges delivered to its retail outlets and end-consumers; Fane. fe) Provide servicing, delivery, and technical assistance SEC. 24. License to Operate. - In addition to other permits, certifications, clearances, and licenses under existing for its retail outlets and end-consumers; and laws such as Republic Act No. 9514 and Republic Act (f) Periodically check compliance of retail outlets with No. 4109, every LPG industry participant shall secure a ce ea the following: license to operate for a specific activity, which shall be specific to the site, plant, or outlet, prior to the commencement of sey (1) Content requirements of LPG sold, and commercial operation, and shall publicly post such license to es operate in its business establishment or premises. In the event (2) Proper calibration and sealing of measuring devices. that the LPG industry participant intends to engage in a new ee activity outside of its current license to operate, it shall secure another license to operate for such new activity. All LPG “— aoe 25 en 24 industry participants shall conduct business only with LPG CHAPTER V industry participants with a valid license to operate for the AUTO-LPG te specific activity they are engaged in. Te The DOE shall have the exclusive authority to issue the SEC. 27. Auio-LPG Container Importers and hide MOY jlicense to operate. It shall be valid for a period of three (3) Manufacturers, Aute-LPG Conversion Shops, and Auto-LPG ‘years or any such period as may be determined by the DOE. Dispensing Siations. — Any LPG industry participant who imports or manufactures auto-LPG containers, engines, and Any person already engaged in any activity as defined accessories, installs auto-LPG containéré, ,engines, and herein, at the time ofsthe effectivity of this Act, shall obtain. accessories, retrofits motor vehicles with auto-LPG containers, a license to operate within six (6) months. from the or operates an auto-LPG conversion shop shall comply with promulgation of this Act's implementing rules and regulations. the requirements, quality and safety standards, rules, and 4 regulations issued by the DTI and LTO pursuant to Sections SEC..,25. Registration of Bulk Consumers and 7 and 10 of this-Act and other pertinent ‘government agencies Centralized LPG Piping Systems. — A bulk consumer, and the including the BFP. owner and operator of a centralized LPG piping system shail register with the DOE: Provided, That a bulk consumer, and Any LPG industry participant who constructs and the owner or operator of a centralized LPG piping system-who operates an auto-LPG dispensing station shall comply with the engages in another activity as an LPG industry participant requirements, quality and safety standards, rules, and © shall be required to secure another license to operate for such regulations issued by the DOE pursuant to Section 6 of this activity: Provided, further, That registration does not exempt Act and other relevant government agencies including the the bulk consumer, and the owner ,and operator of the BFP. centialized LPG piping system from compliance with quality . te and safety requirements and standards as provided under this CHAPTER VI Act and existing laws such as Republic Act No. 9514 and OWNERSHIP OF LPG PRESSURE VESSELS ew Republic Act No. 4109. SOT te SEC. 26. DTI Certificates and Licenses. — An LPG SEC. 28. Ownership of LPG Cylinders. — The trademark ores industry participant who engages in the importation, owner whose permanent mark or durable marking, whichever requalification, manufacture, or repair of LPG pressure vessels, is applicable, appears on the LPG cylinder shali be the owner whichever is applicable, shall obtain the applicable certificates thereof. LPG cylinders with water capacity of less than or and licenses from the DTI prior to the commencement of equal to one (1) liter shall comply with the durable marking aedae commercial operation, and as may be determined by the DTI. : requirements as may be determined by the DOE and DTI. The ownership shall apply to LPG cylinders sold, subject of 7rene ei Any LPG industry participant already engaged in the exchange or swapping, or which are in the possession of any importation, requalification, manufacture, or repair of LPG refiller, bulk distributor, marketer, dealer, retail] outlet, or pressure vessels, whichever is applicable, at the time of requalifier, or such other person duly authorized by the effectivity of this Act shall seeure the required certificates and trademark owner. oe licenses from the DTI within six (6) months from the promulgation of this Act’s implementing rules and regulations. erate ae eae 26 27 my The trademark owner who owns the LPG cylinder shall The LPG Cylinder Exchange and Swapping Program have the obligation to ensure that all of its LPG cylinders shall be governed by the following principles: comply with all the required quality and safety standards including requalification, and other rules and regulations before fa) It shall be aligned with the LPG Cylinder they are released for distribution: Provided, That receipt by Improvement Program as specified in this Act; A AORTA on ‘the DOE of a notice or report from the trademark owner, as verified by the DTI, regarding any lost, stolen, or missing LPG (b) The safety of LPG cylinders shall be paramount ‘cylinder shall prima facie relieve the trademark owner of the towards the protection of all end-consumers; MAR IEF ve Li obligation to ensure, the quality and safety of such LPG cylinder. \ - ae (c) The end-consumer shall have ‘the-freedom y of choice in the purchase of LPG-filled cylinders; | + - SEC. 29. Ownership of LPG Cartridges. - The ‘trademark “owner whose durable marking appears on the LPG cartridge (@) Alt LPG industry participants shall take part in the Mirae shall be considered the owner thereof, LPG Cylinder Exchange and Swapping Program: SEC. 30. Ownership of Auto-LPG Containers. — An auto- @) All arrangements, agreements, and contracts entered LPG container shall be permanently installed inside the motor into between participants shall be executed using fair, vehicle and shall be an inherent and integral part of-the reasonable, and nondiscriminatory terms; apd vehicle. The ownership of the auto-LPG container shall be with the owner of the motor vehicle to which the auto-LPG (} Any arrangement which may significantly increase container is permanently installed. The owner of the the retail price of LPG-filled cylinders shall be subject to auto-LPG container shall ensure its: compliance with the consultation with consumer groups and LPG industry quality and safety standards, rules, and “regulations pursuant participants. : an to the provisions of this Act and existing laws. The DOE shall, together with the DTI and in coordination eet with LPG industry participants, create a task force including CHAPTER VIE public and private stakeholders to assist in the implementation LPG CYLINDER EXCHANGE, SWAPPING, of the LPG Cylinder Exchange and Swapping Program, AND IMPROVEMENT PROGRAMS _ SEC. 32. LPG Cylinder Improvement Program. — Within six (6) months from the effectivity of this Act’s implementing SEC. 31. LPG Cylinder Exchange and Swapping Program. a rules and regulations, the DOE shall, together with the DTI — Within si (6) months from the effectivity of this Act’s and in consultation with all LPG industry participants, implementing rules and regulations, the DOE shall, together consumer groups, and other public and private stakeholders, with the DTI and in consultation with all LPG industry formulate and publish an LPG Cylinder Improvement Program participants, consumer groups, and other public and private which shall include, among others, the entities responsible for stakeholders, formulate and publish an LPG Cylinder Exchange establishing and the amount to be set aside for the LPG and Swapping Program, which shall include, among others, Cylinder Improvement Program fund, the allowed uses and the procedure and timeline for exchange, swapping, and buyback of LPG cylinders, the computation of the depreciated rimmuamaitmnee py titintes aemtinrts value of LPG cylinders, and the establishment of accredited LPG cylinder swapping centers. mer, 28 29 9 Nan a attr entities authorized to utilize the fund, and the procedures for circulation in the market which were not illegally imported , access and audit of the fund. and are not defective, injurious, unsafe, and dangerous: tA Provided, That such transition period shall not be beyond The LPG Cylinder Improvement Program shall be three (3) years from the time of the effectivity of the LPG ‘governed by the following principles: Cylinder Improvement Program. The DOE shall, together with the DTI and in coordination with LPG industry participants, so i er ft mm i ! (a) It shall be aligned with the LPG Cylinder Exchange create a task force including the public and private and Swapping Program as specified in this Act; stakeholders to assist in the implementation of the LPG ese Metta Cylinder Improvement Program. j ‘ (b} The safety ‘et LPG cylinders shall be parainount’ ‘ ? towards, the protection of all end-consumers; - ~, CHAPTER Vill ! a A sO 4 (c} -All LPG industry participants shall take part in the MONITORING AND ENFORCEMENT MECHANISMS LPG Cylinder Improvement Program: A lah (dq) A generic LPG cylinder or LPG cylinder without a SEC, 33. Reports and Disclosures to the DOE. - In ATR requiring LPG industry participants to submit written or trademark owner shall first be requalified and then permanently marked with the trademark or trade name of the electronic forms or reports pursuant to Section 6 of this Act, trademark owner who was last in possession of the LPG the DOE shall be prohibited from sharing, disclosing, or cylinder, and such trademark owner shall be the owner of the making available to the public and other LPG industry LPG cylinder exercising such rights and obligations pursuant participants any information, document, plan, and report to this Act: constituting trade secrets, proprietary data, and other 7 legitimate commercial information which are confidential or ) The program privileged in nature. shall not apply to generic LPG cylinders or LPG cylinders without trademark owners which: SEC. 34. Central Database of LPG Industry Participants. — The central database, which shall be open to the public, (1) Have been illegally imported, or created by the DOE pursuant to Section 6 of thie Act shall be updated on a monthly basis. It shall include the following ae (2) Are defective, injurious, unsafe, and dangerous; ese information: () All arrangements, agreements, and contracts entered into between participants shall be executed using fair, (a) Corporate, business, or trade name of the LPG reasonable, and nondiscriminatory terms: and industry participant: Ha4n (g) Any arrangement which may significantly increase () Registered trademark or trade name or logo of LPG, the retail price of LPG-filled cylinders shall be subject to LPG pressure vessels, facilities, and equipment: consultation with constmer groups and LPG industry participants. ©) Certification from LPG industry participants as to who they have contracted with when it comes to activities es eee . The DOE and DTI shall determine the transition period within the scope of this Act pursuant to Section 4 hereof; for the permanent marking of all generic LPG cylinders and LPG cylinders without a trademark or trade name in = 30 3f @) List of lost, stolen, and missing LPG cylinders; LPG-filled cylinders or cartridges which are confiscated, recalled, seized, or impounded and found by the DOE to pose

(e) Violations committed and incidents relating to such an imminent threat to the public or in danger of exploding violations; and shall be disposed of without serving prior notice to the owners thereof. The DOE shall notify the owner of such fact within oa 1 @ Other relevant information as may be determined by five (5) calendar days after such disposition. ‘the DOE: Provided, That it shall not include trade secrets ‘and other proprietary information as may be determined in SEC. 36. LPG in Cartridges. — It shall be unlawful for this Act's implementing rules and regulations. . any person to refill an LPG ‘cartridge or gell, trade, or \ ° ane distribute cartridges not designed of intended for LPG, or Pe? noncompliant with existing PNS. . a \ CHAPTER IX 7 / _ LPG CYLINDERS AND CARTRIDGES wo es ae tty CHAPTER X ° TRANSPORT OF LPG SEC. 35. Declaration of LPG Cylinder or Cartridge as Nige Uncertified, Defective, Injurious, Unsafe; or Dangerous. — When the DOE finds, motu preprio or upon complaint of any SEC. 37. Transport of LPG. — All motor vehicles utilized person, that an LPG cylinder or cartridge is uncertified, in the transportation of bulk LPG and filled ‘find unfilled LPG generic, substandard, defective, injurious, unsafe, or dangerous, cylinders and cartridges shail register with the LTO and shall whichever is applicable, it shall, after due notice, issue the comply with the guidelines of the DOE, LTO, and BFP appropriate order for its immediate confiscation, recall, seizure, pursuant to Sections 6, 10, and 9, respectively, of this Act. impoundment, or prohibition from publie sale or distribution: ® Provided, That duly requalified generic LPG cylinders already ae! te ws, ny in the market at the time of the effectivity of this Act which CHAPTER XI were not illegally imported shall be allowed until the lapse of PROHIBITED ACTS AND PENALTIES the transition period as may be determined by the DOE and DTI pursuant to Section 32 of this Act. The concerned LPG cylinder or cartridge owner shall be afforded an opportunity SEC. 38. Prohibited Acts. - Any natural or juridical to be heard from the issuance of such order, for the purpose person, whether an LPG industry participant or otherwise, shall be prohibited from the following acts: re of determining the propriety of the confiscation, recall, seizure, terre impoundment, or prohibition from public sale or distribution {a} Engaging in activities without the required licenses, of the LPG Cylinders or cartridges. The DOE shall terminate permits, and certificates under this Act, specifically: the proceedings and make a final determination on whether “t4 the LPG cylinder or cartridge is uncertified, generic, ee ner (1) Engaging in an activity without a valid license to substandard, defective, injurious, unsafe, or. dangerous, operate or registration from the DOE, whichever is applicable, whichever is applicable, within thirty (30) calendar days from business permit, and other required licenses and certificates the issuance of the order for confiscation, recall, seizure, issued by relevant agencies, and impoundment, or prohibition from public sale or distribution. ees aol ty (2) Manufacturing and repairing of LPG pressure vessels, manufacturing of LPG seals, and requalifying of LPG 32 33 OLE MEME pressure vessels without a valid license, permit, and certificate Gv) Measuring devices, na from the DTI: (2) Fabricating and manufacturing of LPG pressure (b) Engaging in activities with or as an unauthorized vessels using substandard materials, -person, specifically: {3) Manufacturing of LPG pressure vessels without the 1 (1) Knowingly transacting with, or selling or distributing necessary markings and safety and quality marks as required er uy a mugs 'LPG, LPG présaure vessels, or LPG seals to an LPG industry by the PNS, or the standard governing LPG pressure vessel participant who does not have the required licenses, manufacture, requalification, and ‘repair, whichever is certificates, clearance§, or permits, whichever is applicable, ,, . a applicable, * He OF Baro om * "Qt ‘Manufacturing, distributing, refilling, or sélling LPG (4) Stamping or marking wrong, miSleading, incorrect, 4cylinders carrying a trademark or trade name without the or inaccurate information on LPG pressure vessels, whichever ACA ees express approval of the trademark owner, is applicable, (3) Selling, exchanging, bartering, distributing, (5) Creating or manufacturing of illegal or fake LPG transferring, or possessing of empty LPG cylinders by any NR seals, and x LPG industry participant other than the trademark owner or oe without its consent outside of the LPG Cylinder Exchange and (6) Failing to comply with the safety design and Swapping Program pursuant to Section 31 of this Act, and requirements, permits, and clearances of motor vehicles transporting LPG in bulk and LPG cylinders and cartridges; (4) Possessing LPG seals, including the seals already usedin LPG cylinders, without authority from the trademark qd) Engaging in activities involving LPG and LPG or trade name owner or its duly authorized refiller; pressure vessels that are noncompliant with the standards, requirements, and guidelines under this Act, specifically: (c) Failing to comply with the standards, requirements, and guidelines under this Act, specifically: (1) Importing used or second-hand LPG pressure vessels, (i) .Failing to comply with the standards and (2) Importing brand new LPG pressure vessels requirements on: noncompliant with PNS and without a valid certificate or license from the DTI, i) Safety design including fire safety requirements for refining plants, refilling plants, depots, storage areas, motor (3) Selling and distributing defective, injurious, unsafe, vehicles, retail outlets, warehouses, auto-LPG conversion shops, dangerous, noncompliant, or substandard LPG pressure “Arey auto-LPG dispensing stations, and other related facilities of vessels, LPG industry participants, (4) Selling or distributing refilled LPG cartridges, (ii) Safety practices, . (5) Selling or distributing LPG-filled cylinders without (iii) LPG, and a seal, with a tampered, fake, or broken seal, inappropriate a or unauthorized seal, or with a seal not belonging to the IA trademark owner, a aC a ee eeem 34 rem 35 . 6) Selling or distributing LPG pressure vessels without a Ql) Failing to submit periodic reports as may be the necessary markings and safety and quality marks as required pursuant to Section 6 of this Act, ee y required by the PNS, or the standard governing LPG pressure vessel manufacture, requalification, and repair, whichever is (2) Refusing, preventing, or obstructing the inspection of ‘applicable, its premises and records pursuant to Section 6 of this Act, + ‘ (1) Selling or distributing LPG through means other (3) Refusing or failing to participate in the LPG than in LPG pressure vessels, using tools other than ancillary Cylinder Exchange and Swapping Program, and LPG Cylinder oes equipment compliant with the PNS, or through other Improvement Program pursuant to Segtions 31 and 32 of this contractual arrangeménts not recognized in this Act, ' c Act, fe > * “ ) Filling LPG pressure vessels with LPG mixed with (4) Failing to submit the certification pursuant to 4 another finished or unfinished petroleum or non-petroleum Section 34 of this Act, and product, substance, or material resulting in the failure of the LPG to meet the required PNS. The possession of LPG (5) Failing to comply with other responsibilities in pressure vessels containing adulterated LPG shall be prima Chapter IIT hereof; facie evidence of violation of this provision, x (} Engaging in the following: we QQ) Selling of adulterated LPG in bulk and in pressure vessels, ° (1} Destroying, tampering, altering, or modifying LPG. pressure vessel through any means such as, but not limited (10) Refilling LPG cartridges, to, changing the LPG cylinder valve, repainting, and relabeling, whichever is applicable: Provided, That this shall (11) Hauling, loading, transporting, or permitting the not be prohibited if it is done by the trademark owner, loading and transportation of LPG in bulk, or LPG-filled cylinders or cartridges in quantities greater than the rated (2) Preventing end-consumers from purchasing LPG capacity of the motor vehicle or in such a manner that from other trademark owners, marketers, refillers, dealers, or endangers the life and safety of its passengers or the public, retail outlets, (12) Storing LPG in pressure vessels more than the (3) Refusing to refund the deposit on the LPG cylinder volume prescribed in Republic Act No. 9514 and its revised to any end-consumer, in the case of a trademark or trade implementing rules and regulations, name owner and its duly authorized dealer or retail outlet in accordance with the implementing rules and regulations of this (13) Selling or storing empty LPG cylinders of other Act, hae? trademark owners in excess of those allowed under the LPG Cylinder Exchange and Swapping Program guidelines upon its {4) Adulterating LPG, effectivity pursuant to Section 31 of this Act, and (5) Pilfering LPG, and (14) Possessing illegal or fake LPG seals; (6) Utilizing the LPG Cylinder Improvement fund for fe) Failing to comply with the responsibilities as an ree purposes other than what it is intended for. LPG industry participant, specifically: tat toe Som, tee 36 37 akc nt A SEC. 39. Underfilling. - The following acts undertaken a at (2) Noncompliant with the PNS, SRI by the following natural or juridical persons shail constitute StI mth Nad 4 underfilling of LPG pressure vessels: (8) Due for repair, requalification or scrappage, or are subject to a recall or prohibition order of the DOE or DTI, {a} The refiller when the net quantity of LPG contained and Saath SAIT t in an LPG pressure vessel sold, transferred, delivered, or filled i i is less than the LPG pressure vessel content required at the (4) By auto-LPG dispensing stations; refilling plant; and Se pf may EE (g) Unauthorized loading of LPG bully storage tanks; (b) The dealer\or retail outlet when the net quantity of: and fe LPG ina pressure vessel sold, transferred, or delivered is less “than the required LPG pressure vessel content quantity. ee f f (h) Any other filling or refilling of LPG pressure vessels in violation of the requirements and standards under this Act. If applicable, a broken, tampered, absent, or removed seal, or an LPG pressure vessel that does not have the proper SEC. 41. Penalties. - Any person found in violation of seal attached to it, shall be considered prima facie evidence the following acts shall have the following administrative and of underfilling. ‘ criminal penalties: * ; we SEC. 40. Illegal Refilling. — The following acts shall {a} Section 38 (a)(1): constitute illegal refilling of LPG pressure vessels: (1) First offense - Administrative penalty of fine _ a) Filling or refilling of LPG, pressure vessels with amounting to a minimum of Five thousand pesos (P5,000.00) products or substances other than LPG. in an effort to achieve for each day of operation without the réquired license, permit, the correct net weight; certificate, or registration, &) Filling or refilling of LPG cylinders directly from (2) Second offense - Administrative penalty of fine LPG bulk storage tank trucks; amounting to a minimum of Ten thousand pesos (P10,000.00) for each day of operation without the required license, permit, (c) Unauthorized cross-filling; certificate, or registration, and (a) Refilling of LPG from one LPG cylinder to another (3) Third offense — Administrative penalty of fine cylinder; ,. amounting to a minimum of Twenty thousand pesos (P20,000.00) for each day of operation without the required (e) Refilling of LPG cylinders other than in duly license, permit, certificate, or registration; "8 ay licensed LPG refilling plants; (b) Section 38 (a)(2): () Refilling of LPG cylinders: (1) First offense ~ Administrative penalties of fine (1) Bearing defaced, tampered, or illegible markings amounting to a minimum of Twenty-five thousand pesos contrary to the mandatory labeling and stamping requirements under this Act, 38 39 (P25,000.00) for every LPG pressure vessel or seal and d) Section 38 (c)(1) and (c)(6): confiscation of pressure vessels or seals, (}} First offense - Administrative penalty of fine (2) Second offense ~ Administrative penalties of fine amounting to a minimum of Three hundred thousand pesos ‘amounting to a minimum of Fifty thousand pesos (P50,000.00) (P300,000.00): Provided, That for retail outlets the fine shall ifor every LPG pressure veseel or seal, confiscation of pressure be a minimum of Ten thousand pesos (PI0,000.00), vessels or seals, and suspension of license to operate. Upon conviction, the criminal penalty of imprisonment for at least (2) Second offense ~ Administrative. penalties of fine one (1) year but not,more than three (3) years, and amounting to a minimum of Five hundred thousand pesos \ eof 8 (P500,000.00) and suspension of licenge to dperate: Provided, (3) , Third offense — Administrative penalties of fine That for retail outlets the fine shall be a oxinimum of Twenty /Amounting to a minimum of Qne hundred thousand pesos LL thousand pesos (P20,000.00). Upon conviétion, the criminal é (P100, 000. 00) for every LPG pressure vessel or seal, penalty of imprisonment of at least one (1) year but not more confiscation of LPG pressure vessels or seals, closure, and sancinilnsibeXuaehe Secrets than three (3) years, and permanent disqualification from engaging in any activity as an LPG industry participant. Upon conviction, the criminal (3) Third offense -— Administrative penalties of fine penalty of imprisonment for at least three (3) years and one amounting to 4 minimum of One ‘million pesos (P1,000,000.00), (1) day but not more than six (6) years; closure, and permanent disqualification from ehgaging in any activity as an LPG industry participant: Provided, That for (c) Section 38° (b): retail outlets the fine shall be a minimum of Thirty thousand pesos (P30,000.00). Upon conviction, the criminal penalty of (1) First offense — Administrative penalties of fine imprisonment of at least three (3) years and one (1) day but amounting to a minimum of Ten thousand pesos (P10,000.00) not more than six (6) years: for every LPG pressure vessel or seal and, if applicable, closure until the required licenses and permits are secured, €) Section 38 ()(2), (c)(3), (}(4), and (c)(5): {2) Second offense — Administrative penalties of fine (1) First offense — Administrative penalties of fine amounting to a minimum of Twenty thousand pesos amounting to a minimum of Twenty-five thousand pesos (P20,000.00) for every LPG pressure vessel or seal, whichever (P25,000.00) for every LPG pressure vessel or seal and is applicable, suspension of license to operate, and if applicable, confiscation of the said LPG pressure veasel or seal, closure until the required licenses and permite are secured. Upon conviction, the criminal penalty of imprisonment of at (2) Second offense — Administrative penalties of fine least six (6) months but not more than one (1) year, and amounting to Fifty thousand pesos (P50,000.00) for every LPG pressure vessel or seal, confiscation of said LPG pressure vessel (3) Third offense — Administrative penalties of fine or seal, and suspension of license to operate. Upon conviction, amounting to a minimum of Thirty thousand pesos the criminal penalty of imprisonment for at least. one (1) year {P30,000.00) for every LPG pressure vessel or seal, closure, but not more than three (3) years, and and permanent disqualification from engaging in any activity as an LPG industry participant. Upon conviction, the @) Third offense — Administrative penalties of fine criminal penalty of imprisonment of one (1) year and one (1) amounting to One hundred thousand pesos (P100,000.00) for day but not more than three (3) years; every LPG pressure vessel or seal, confiscation of said LPG RN inetmn Se mmm 4! 40 (a), The illegally refilled LPG cylinders in Section 40 (c}, pressure vessel or seal, closure, and permanent disqualification te shall be confis cated outrig ht; (e), (, (g), and (h) . from engaging in any activity as an LPG industry participant. Ve Nae die Upon conviction, the criminal penalty of imprisonment for at Section 38 (e)(1), (e)(4), and {e)(5): CIUAI NS ae HRT NES leh Aa (g) least three (3) years and one (1) day but not more than six (6) years; (i) First offense — Administrative penalty of fine 3 to a minimum of Twenty thousand pesos amounting @ Sections 38 (d) and 40: (220,000.00), ee penalties of fine - Administrative (2) Second offense — Administrative’ penalties of fine a (1) First offense amounting to a mifimum of Twenty-five thousand pesos. _, (P50,000.00) — amounting to a minimum of Fifty thousand Pesos (P25,000.00) for every LPG pressure vessel.or seal and » ‘ and suspension of license to operate, and confiscation of said LPG pressure vessel or seal: Provided, ” a That in.the case of broken seals, the fine shall be a minimum penalties of fine 4 (3) Third offense — Administrative of One thousand pesos (P1,000.00) for every LPG cylinder. In to a minimum of One hundred thousand pesos amounting the case of illegal refilling, upon conviction, the criminal (P100,000.00), closure, and permanent disqualification from Fe penalty shall be imprisonment of six to twelve (6-12) years, engaging in any activity as an LPG industry participant; (2) Second offense — Administrative penalties of fine (h) Section 38 (e)(2) and (e}(8): ww amounting to a minimum of Fifty thousand pesos (P50,000.00) q for every LPG pressure vessel or seal, confiscation of said LPG (1) First offense — Administrative pénalty of fine pressure vessel or seal, and suspension of license to operate. minim um of Three hundr ed thousand pesos amounting to a Upon conviction, criminal penalty of imprisonment for at least (P300,000.00), one (1) year but not more than three’-(3) years. In the case + of broken seals, the administrative penalty of fine shall be a 2} Second offense — Administrative penalties of fine minimum of Four thousand pesos (P4,000.00) for every LPG amounting to a minimum of Five hundred thous and pesos cylinder and there shall be no criminal penalty. In the case (P500,000.00) and the suspension of license to operate, and of illegal réfilling, upon conviction, the criminal penalty shall be imprisonment of six to twelve (6-12) years, and (3) Third offense — Administrative penalties of fine amountingto a minimum of One million pesos (P1,000,000.00), (8) Third offense — Administrative penalties of fine closure, and permanent disqualification from engaging in any amounting to a minimum of One hundred thousand pesos activity as an LPG indust ry participant; (P100,000.00) for every LPG pressure vessel or seal, confiscation of said LPG pressure vessel or seal, closure, and G) Section 38 (f(1): v4my permanent disqualification from engaging in any activity as an LPG industry participant. Upon conviction, the criminal (1) First offense - Administrative penalties of fine penalty of imprisonment for at least three (3) years and one amounting to a minimum of Twenty-five thousand pesos (1) day but not more than six (6) years. In the case of broken (P25,000.00) for every LPG pressure vessel and confiscation seals, the administrative pbnalty of fine shall be a mimimum of said LPG pressure vessel, of Eight thousand pesos (P8,000.00) for every LPG cylinder and there shall be no criminal penalty. In the case of illegal refilling, upon conviction, the criminal penalty shall be imprisonment of six to twelve (6-12) years. ere 42 43 fo (2) Second offense — Administrative penalties of fine @ Section 39: amounting to a minimum of Fifty thousand pesos (P50,000.00) for every LPG pressure vessel, confiscation of the said LPG (1) First offense — Administrative penalty of fine pressure vessel, and suspension of the license to operate. Upon ne amounting to a minimum of Twenty thousand pesos conviction, the criminal penalty of imprisonment for at least (P20,000.00) for every LPG pressure vessel. Upon conviction, one (1) year but not more than three (3) years, and the criminal penalty of imprisonment of six to twelve (6-12) years, (8) TKird offense ~ Administrative penalties of fine amounting to a minimum of One hundred thousand pesos (2} Second offense — Administrative penalties of fine (P100,000.00) for every LPG pressure vessel, confiscation of the - . amounting to a minimum of Thirty thousand pesos said LPG pressure vessel, closure, and, permanent (P30,000.00) for every LPG pressure.yessel, and’ suspension of ? _ disqualification from engaging in any activity as an LPG license to operate. Upon conviction, the ériminal penalty of a industry participant. Upon conviction, the criminal penalty imprisonment of six to twelve (6-12) years, and of imprisgnment for at least three (3) years and one (1) day but not more than six (6) years; (8) Third offense — Administrative penalties of fine amounting to a minimwm of Forty thousand pesos (P40,000.00) G} Section 38 2), (4), 6), and (6): Administrative _ for every LPG pressure vessel, closure, and permanent penalties of fine amounting to a minimum of One million disqualification from engaging in any actiyity as an LPG pesos (P1,000,000.00), closure, and permanent disqualification industry participant. Upon conviction, the criminal penalty from engaging in any activity as an LPG industry participant. of imprisonment of six to twelve (6-12) years. Upon conviction, the criminal penalty of imprisonment for at least six (6) months and one (1) day to six (6) years; SEC. 42. Violations by Juridical Entities. — If the violation is committed by a corpordtion, partnership, (k} Section 38 (H(3): association, or other juridical entity, the penalty of imprisonment shall be imposed on the responsible directors or (1} First offense - Administrative penalties of a warning officers thereof, and the lack of corporate personality cannot and a fine of Five thousand pesos (P5,000.00) for the failure be raised as a defense in case the juridical entity is or refusal to refund the deposit of each LPG cylinder, unregistered. Any new juridical entity formed by persons or agents of auch persons previously found in violation of the (2) Second offense — Administrative penalties of fine of prohibited acts under this Chapter for the third time shall be Ten thousand pesos (P10,000.00) for the failure or refusal to permanently disqualified from engaging in any activity as an refund the deposit of each LPG cylinder and the suspension LPG industry participant. of license to operate, and a2 SEC. 43. Suspension, Cessation, and Closure. — Nothing (3) Third offense — Administrative penalties of fine of in this Chapter shall preclude the DOE from ordering the Twenty thousand pesos (P20,000.00) for the failure or refusal suspension or cessation of the operation of the facility, or the to refund the ‘deposit of each LPG cylinder, closure, and closure thereof until such time that the mandatory permanent disqualification from engaging in any activity as requirements or corrective measures directed by the DOE have an LPG industry participant; and been met. 44 435 ingees 8 SEC. 44. Initiation of Administrative Action by the DOE. (40%) share of the proceeds from fines and penalties collected - An administrative action shall be initiated by the DOE eee by the DOE from the concerned LPG industry participant: through the issuance of a show cause order ta the LPG Provided, That the remaining sixty percent (60%) shall be industry participant, giving the latter the opportunity to explain utilized by the DOE to implement the provisions of this Act in writing within the period prescribed by the DOE from including information dissemination, capacity building, and receipt of the order: Provided, That the entire administrative research and development. proceeding shall not exceed sixty (60) calendar days from the issuance of 4 show cause order to the final resolution by the 3 SEC. 48. Utilization of LGU Share. — The LGU shall DOE. The DOE shall have the discretion to conduct a hearing 3 utilize its share from the fines and penalties collected pertaining to the viblation, or to impose an outright penalty , pursuant to Section 47 of this Act exclusively for the purpose based on the merits of the written explanation, ° of transporting, hauling, storing,.decantjng, ‘and disposing / é 4 confiscated LPG, LPG pressure véssdls, and ancillary SEC. 45. Imposition of Preventive Suspension Order. - equipment. Without prejudice to other administrative remedies, the DOE may, during the pendency of an administrative proceeding, SEC. 49. Permits and Licenses. — The procedure for all suspend the operations of the concerned business of an LPG permits and licenses issued pursuant to this Act shall be industry participant subject of the proceeding within a governed by Republic Act No. 11234, otherwise known ag the maximum period of forty-five (45) calendar days to prevent “Energy Virtual One-Stop Shop Act”. The EVOSS Steering undue interference in the ongoing investigation and tampering Committee shall streamline the permitting process for the LPG of evidence in accordance with the implementing rules and industry and shall continue its mandate under Republic Act regulations of this Act. No. 11234. ” SEC. 46. Impoundment and Disposition of Impounded SEC. 50. Establishment of Dedicated Office. — The DOE Evidence. — Without prejudice to Section 35 of this Act, the shall establish a dedicated office for the effective DOE shail, with the assistance of law enforcement agencies implementation of this Act. The organizational structure and pursuant to Section 13 of this Act, be authorized to impound staffing complement shall be determined by the Secretary of prohibited LPG, LPG pressure vessels, ancillary equipment, the DOE, in consultation with the Department of Budget and and motor vehicles used in the transportation of LPG and Management, and in accordance with existing civil service LPG-filled pressure vessels as evidence of the violations under rules and regulations. The budgetary requirements shall be this Act. The final disposal of the impounded items shall be taken from the current appropriations of the DOE. subject to the final resolution of the DOE or the court having Thereafter, the funding for the dedicated office shall be jurisdiction over the prohibited act. included in the annual General Appropriations Act. SEC. 51. Appropriations. — The amounts necessary for es CHAPTER XII the sustainable implementation of this Act shall be included FINAL PROVISIONS in the annual General Appropriations Act. SEC. 47. Sharing of Fines and Penalties. — The city or SEC. 52. Implementing Rules and Regulations. — The municipality where the principal place of business of an LPG DOE, shall, together with the DTI, and in consultation with industry participant is located shall be allotted a forty percent 46 47 the concerned government agencies and stakeholders, including SEC. 58. Effectivity. — This Act shall take effect after consumer groups, promulgate the implementing rules and fifteen (15) days after its publication in the Official Gazette regulations of this Act within sixty (60) days from its or in at least two (2) newspapers of general circulation. effectivity. All guidelines, regulations, and other issuances ‘mandated to be promulgated in this Act shall be issued within Approved, isixty (60) days from the promulgation of this Act’s ne implementing rules and regulations except in the case of the ha LPG Cylinder Exchange and Swapping Program and the LPG eC, / Cylinder Improvement Program which shall be promulgated ee . ? ° os pursuant to Sections 31 and 32 of this Act. JAY Q, VELASCO VICENTE C. SOTTO If p LO = Present of the Senate i irtatcarmasaert Nee mbt me eatin Ame SEG. 53, Transition Period. - Unless otherwise provided Spe of the House -’ va of Representatives _ in this Act, the DOE ehall, upon prior consultation with the LPG industry participants and other government agencies and taking into account data obtained from LPG industry This Act which is a consolidation of Senate Bill No. 1955 participants and other sources, determine the appropriate and House Bill No. 9323 was passed by the Senate of the transition period for compliance by all LPG industry Philippines and the House of Representatives on Auguat 2, participants with the objectives of this Act: Provided, That 4.2021, respectively. ra copra the fan TR AE ne eles 2021 and_A such transition period shall not be beyond six (6) months from the effectivity of this Act's implementing rules and regulations. |. SEC. 54. Congressional Oversight. — The Joint Congressional Energy Commission shall exercise oversight powers over the implementation of this Act. . SEC. 55. Construction and Interpretation. — Any doubt in the interpretation of any provision in this Act shall be interpreted in favor of the interest of the end-consumers and the general public. SEC. 56. 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. RODRIGO ROA DUTERTE Presidentyof_the Philippines SEC. 57. Repealing Clause. — All laws, decrees, executive Office af thie President orders, proclamations, and administrative regulations, or parts et O MALACAAING RECORDS OFFICE thereof inconsistent herewith are hereby repealed or modified accordingly. ep CERTIFIED COPY et REPUBLIC OF THE PHILIPPINES PRRD 2016 - 0187389