LPG Industry Regulation Act

Case Overview and Summary

Summary of the LPG Industry Regulation Act

Objectives and Policies (Sections 1-4)
- Establish regulatory framework for safe operations of LPG industry.
- Protect interests of end-consumers and ensure general welfare.
- Institute reforms in standards and codes of practice for LPG industry.
- Ensure health, safety, security, environmental and quality standards for LPG activities.
- Promote awareness on proper use of LPG and LPG equipment.
- Uphold consumer choice in purchasing LPG-filled cylinders.
- Promote technological innovation in LPG industry.

Role of Government Agencies (Sections 5-14)
- Department of Energy (DOE) is the lead agency for implementation and enforcement.
- DOE powers and functions (Section 6) include:
  - Prepare LPG Industry Development Plan.
  - Implement and ensure compliance with standards for LPG facilities, equipment, and activities.
  - Issue licenses, orders, guidelines, and authorize LPG seals.
  - Investigate violations, impose penalties, confiscate non-compliant items.
  - Exercise visitorial powers and require reports from industry participants.
  - Maintain database of participants and LPG supply levels.
  - Formulate LPG Cylinder Exchange/Swapping and Improvement Programs.
  - Conduct information campaigns on LPG safety.
- Department of Trade and Industry (DTI) develops standards, certifies manufacturers, requalifiers, etc. (Section 7)
- Other agencies' roles defined for DILG, BFP, LTO, LTFRB, MARINA, LGUs, PNP (Sections 8-13)

Responsibilities of LPG Industry Participants (Sections 15-22)
- Comply with standards for facilities, equipment, practices (Section 15)
- Specific responsibilities for bulk suppliers, distributors, haulers, refillers, trademark owners, dealers, retail outlets (Sections 16-22)

Registration, Licenses and Permits (Sections 23-26)
- LPG industry participants require licenses from DOE and DTI.
- Bulk suppliers, refillers, bulk consumers must register before construction.
- Bulk consumers and centralized piping system owners must register with DOE.

Auto-LPG (Section 27)
- Requirements for auto-LPG container importers, manufacturers, conversion shops, dispensing stations.

Ownership of LPG Pressure Vessels (Sections 28-30)
- Trademark owner is owner of cylinders bearing its mark.
- Trademark owner on cartridge is considered owner.
- Auto-LPG container ownership is with vehicle owner.

LPG Cylinder Exchange, Swapping and Improvement Programs (Sections 31-32)
- DOE and DTI to formulate programs within 6 months of rules, in consultation with stakeholders.
- Exchange/Swapping Program allows consumer choice, cylinder exchange among participants.
- Improvement Program ensures quality of cylinders, funds for cylinder improvement.
- Transition period up to 3 years for marking generic cylinders.

Monitoring and Enforcement (Sections 33-34)
- DOE can require reports from participants, protecting trade secrets.
- Central database of participants, supply levels, violations to be maintained.

LPG Cylinders and Cartridges (Sections 35-36)
- DOE can confiscate uncertified, defective, unsafe cylinders after due process.
- Illegal to refill LPG cartridges or use non-compliant cartridges.

Transport of LPG (Section 37)
- Motor vehicles for LPG transport must register with LTO and comply with DOE/LTO/BFP guidelines.

Prohibited Acts and Penalties (Sections 38-46)
- Lists prohibited acts with administrative fines and criminal penalties.
- Fines from P5,000 to P1 million, imprisonment up to 6 years.
- Underfilling and illegal refilling penalized.
- Suspension, cessation, closure of operations possible.
- Impoundment of prohibited items as evidence.

Final Provisions (Sections 47-58)
- 40% of fines go to LGU where violation occurred.
- Streamlined permitting process under Energy Virtual One-Stop Shop Act.
- DOE to establish dedicated office for implementation.
- Congressional oversight by Joint Congressional Energy Commission.
- Interpretation favors interest of end-consumers.
- Repeals inconsistent laws.
- Effectivity 15 days after publication in Official Gazette.