Law Summary
Declaration of Policy
- Protects end-consumers' interests and general welfare.
- Institutes reforms in LPG industry conduct standards.
- Ensures health, safety, security, environmental, and quality standards across all LPG operations.
- Promotes consumer awareness and education on LPG safety.
- Upholds freedom of consumer choice regarding LPG cylinder trademarks.
- Encourages technological innovation in the LPG industry.
Scope and Application
- Covers activities involving importing, refining, storing, exporting, refilling, transporting, distributing, and marketing LPG.
- Applies to LPG pressure vessel management (import, manufacture, requalification, repair, exchange, scrappage).
- Applies to safe operations in all LPG facilities and varied LPG uses.
Definition of Terms
- Defines key concepts such as LPG, LPG pressure vessels, cylinders, cartridges, bulk suppliers, distributors, refilling plants, marking types, industry participants, and many other technical terms.
- Adulterated LPG means LPG mixed with substances that affect quality and violate Philippine National Standards (PNS).
- Detailed definitions include various participant roles like license to operate, haulers, marketers, dealers, and more.
Role of Government Agencies
- DOE is lead agency enforcing this Act regarding licensing, standards, investigation, enforcement, and public information.
- DTI develops and enforces PNS standards, certifies manufacturers and service providers.
- DILG coordinates local implementation and assists enforcement.
- BFP ensures fire safety compliance and regulates transportation safety with DOE and LTO.
- LTO and LTFRB regulate motor vehicles and public utility vehicles using LPG.
- MARINA governs marine transport of LPG.
- LGUs assist with enforcement, impoundment, and suspension of business permits.
- PNP and other law enforcement assist in inspections and enforcement.
- DENR issues environmental guidelines regarding disposal.
Responsibilities of LPG Industry Participants
- All participants must comply with PNS and safe handling standards.
- Bulk suppliers and distributors must ensure LPG supply stability and submit contracts to DOE.
- Haulers must maintain authorized vehicles and submit contract certifications.
- Refillers must perform accurate filling, conduct safety tests, and refuse noncompliant cylinders.
- Trademark owners/marketers manage supply, cylinder maintenance, seals, technical assistance, and compliance monitoring.
- Dealers and retail outlets must sell only authorized LPG with corresponding seals and proper measuring devices.
Registration, Licenses, and Permits
- Bulk suppliers, refillers, and bulk consumers must register with DOE before construction of major facilities.
- All participants need a license to operate specific activities/sites before commercial operation, valid for three years.
- Existing operators must secure licenses within six months after IRR issuance.
- DTI certificates and licenses are required for relevant activities related to LPG pressure vessels.
Auto-LPG Regulatory Requirements
- Importers, manufacturers, conversion shops, and dispensing stations must comply with quality and safety standards issued by DTI, DOE, LTO, BFP, and other agencies.
Ownership of LPG Pressure Vessels
- Trademark owners have ownership and responsibility over LPG cylinders marked with their trademark.
- Ownership responsibilities include ensuring compliance with standards.
- Auto-LPG containers are the property of the motor vehicle owner where permanently installed.
LPG Cylinder Exchange, Swapping, and Improvement Programs
- DOE to formulate and implement LPG Cylinder Exchange and Swapping Program within six months from IRR effectivity.
- Principles include consumer freedom of choice, safety prioritization, fair contract terms, and industry-wide participation.
- DOE to formulate LPG Cylinder Improvement Program to manage generic cylinder safety, fund establishment, marking, and requalification.
- Programs aim to systematically improve quality, safety, and ownership clarity of LPG cylinders.
Monitoring and Enforcement Mechanisms
- DOE collects written or electronic reports from participants but protects trade secrets and confidential information.
- DOE maintains a publicly accessible central database with industry participant information, trademark registrations, safety violations, and cylinder status.
LPG Cylinders and Cartridges
- DOE may confiscate or prohibit uncertified, defective, unsafe, generic, or substandard LPG cylinders or cartridges after due process.
- Illegal refilling or sale of noncompliant LPG cartridges is prohibited.
Transport of LPG
- All vehicles transporting bulk or cylinder LPG must comply with DOE, LTO, and BFP guidelines.
Prohibited Acts and Penalties
- Prohibitions include unauthorized activity, manufacturing, selling without licenses or permits.
- Prohibition on selling LPG cylinders without authorized seals or improperly marked.
- Prohibits adulteration, pilferage, underfilling, illegal refilling, and other unsafe or fraudulent acts.
- Various administrative and criminal penalties established with graduated fines, suspensions, closures, and imprisonment depending on offense severity and repetition.
- Corporate officers may be criminally liable.
Administrative Enforcement Procedures
- DOE issues show cause orders and final resolutions within 60 days.
- Preventive suspension of operations for up to 45 days may be ordered.
- DOE may impound evidence of violations.
Final Provisions
- Local government units receive 40% of collected fines for specific enforcement purposes.
- Permitting process streamlined via Energy Virtual One Stop Shop Act.
- DOE to establish dedicated office staffed and funded suitably for Act implementation.
- DOE and DTI will promulgate implementing rules within 60 days.
- Transition periods set for compliance but not beyond six months unless otherwise stated.
- Congressional Joint Energy Commission exercises oversight.
- Interpretation favors consumer protection.
- Separability, repealing, and effectivity clauses provided.
- The Act takes effect 15 days after publication.