Department Circular No. 2007-02-002
Providing for the Rules and Regulations Governing the
Business of Supplying, Hauling, Storage, Handling, Marketing and Distribution
of Liquefied Petroleum Gas (LPG) for Automotive Use
WHEREAS,
the
Department of Energy (DOE) in
pursuance of its powers and functions under Section 5 of
Republic
Act (RA) No. 7638 otherwise
known as the “Department of Energy Act of 1992”,
establishes and administers programs for the exploration, transportation,
marketing, distribution, utilization, conservation, stockpiling, and storage of
energy resources of all forms, whether conventional or non-conventional;
WHEREAS,
the
DOE shall regulate private
sector activities relative to energy projects in order to attain the goals
embodied in Section 2 of
RA 7638: Provided, that
the
Department shall endeavor to provide
for an environment conducive to free and active private sector participation
and investment in all energy activities;
WHEREAS,
RA 8479,
otherwise known as the “Downstream Oil Industry Deregulation
Act of 1998”, shall apply to all persons or entities engaged in any and all
activities of the domestic downstream oil industry including the LPG business
for automotive use, and mandates the
DOE to promote the entry of new
industry participants;
WHEREAS, Section 14(b) of
RA
8479 empowers the
DOE to monitor the refining and
manufacturing of local petroleum products to ensure that clean and safe
(environment and worker-benign) technologies are applied. The same shall also apply to the process of
marketing local and imported petroleum products;
WHEREAS,
Batas Pambansa
Blg. 33, as amended by
Presidential Decree No. 1865,
and the
Implementing Rules and Regulations therefor, define
and penalize certain prohibited acts that are considered inimical to the public
interest and national security, including illegal trading in petroleum and/or
petroleum products, hoarding of petroleum products, adulteration and underdelivery, among others;
WHEREAS, the LPG Business for Automotive Use is subject to pertinent
certifications, permits and licenses issued by government authorities such as,
but not limited to, the
Department of Trade
and Industry, the
Department of
Environment and Natural Resources, the Bureau of Fire Protection,
Bureau of Internal Revenue and Local
Government Units;
WHEREAS, the
downstream oil industry has adopted pertinent provisions of different national
and international safety codes that cover the safe and proper handling,
transport, storage, installation and use of equipment and facilities that are
used in the industry;
WHEREAS, these pertinent provisions in the
different national and international safety codes have been integrated and
included in a National Standards on Health, Safety, and Quality for the
petroleum products business;
WHEREAS, there is an urgent need to eliminate,
illegal and unsafe operation of such business and to impose penalties on
violations to health, safety and product quantity/quality standards in the
industry in order to better protect the consuming public;
NOW,
THEREFORE, in
consideration of the foregoing premises, the following rules are hereby
promulgated to govern the Business of LPG for Automotive Use.
Rule
I
GENERAL
PROVISIONS
SECTION 1. TITLE
This
Department Circular shall be known and cited as “The Rules and
Regulations Governing the Business of Supplying, Hauling, Storage, Handling,
Marketing and Distribution of LPG for Automotive Use” or “Auto-LPG Rules”.
SECTION 2. COVERAGE
These Auto-LPG Rules shall apply to
any Person engaged or intending to engage in the business of supplying,
hauling, storage, handling, marketing and distribution of liquefied petroleum
gas (LPG) for automotive use.
For the purpose of this Auto-LPG
Rules, the following definitions shall apply:
a. “Auto-LPG
Dispensing Station” shall refer to an outlet,
facility, or business establishment which retails Liquefied Petroleum Gas (LPG)
for automotive fuel directly to individual end users or to the motoring public;
The same may be stand alone or located within or operated with a LPPs Retail Outlet;
b. “Auto
LPG Industry Participants” shall
refer to persons or entities engaged in the business of supplying, hauling,
storage, handling, marketing and distribution of liquefied petroleum gas (LPG)
for automotive use.
c. “BFP”
shall refer to the Bureau of Fire Protection created under Republic Act No.
6975 as amended;
d. “Bulk
Supplier” shall
refer to any person or entity who engages in the sale of LPG thru tankers,
barges, tank trucks, trailers and lorries;
e. “Container” or “Auto-LPG Container”
shall refer to any portable pressure vessel with all its permanent support(s)
and attachment(s) installed, used for the storage of LPG for automotive use;
f. “DENR”
shall refer to the
Department of Environment
and Natural Resources, created under Executive Order No. 192;
g. “DILG”
shall refer to the
Department of Interior and
Local Government, created under Republic Act No. 6975;
h. “DOE” shall refer to the Department of
Energy, created under
Republic Act No. 7638,
as amended;
i. “DOST” shall refer to the
Department
of Science and Technology, created under Executive Order No. 128;
j. “DTI” shall refer to the
Department of Trade and Industry, created
under Executive Order No. 292;
k. “Hauler” shall refer to persons or entities
engaged in the transport, distribution and carriage of LPG in bulk from the
bulk supplier to the Auto-LPG Dispensing Station;
l. “LPP”
shall refer to
Liquid Petroleum Products such as gasoline, diesel, and kerosene;
m.
“LGU” shall refer to the local government
unit;
n. “OIMB” shall
refer to the Oil Industry Management Bureau of the
Department of Energy;
o. “PNP” shall refer to the
Philippine
National Police, created under Republic Act No. 6975;
p.
“PNS” or Philippine National Standards” shall refer to the standards
promulgated by the
DTI-Bureau of Product Standards relating to
product specifications, test methods, terminologies, and standardization
procedures, guidelines or practices;
q. “Retailing”
shall refer to the act of selling,
distributing, dispensing, storing, handling, transferring or dispensing LPG for
automotive use directly to the individual end users or to the motoring
public.
Rule
II
Section
4.
SUPPLYING/HAULING IN BULK
Any person who is operating or
intending to operate a LPG bulk supply and/or hauling business for automotive
use shall comply with the latest edition of the following:
a.
National Fire Protection Association (NFPA), Pamphlet 58 –
Liquefied Petroleum Gas Code; and
b.
Philippine
LPG Association (PLPGA) Safety Code
Section 5. RETAILING
Any person who is operating or intending to operate an Auto-LPG
Dispensing Station shall comply with the following requirements of this
Auto-LPG Rules:
a. Auto-LPG Dispensing
Stations shall conform to PNS/DOE FS 3:2006 and any
amendments thereto.
Pursuant
to PNS/DOE FS 3:2006, the retailing of LPG for
automotive use shall be conducted in a dedicated Auto-LPG business premises
with an initial minimum lot area of 250 square meters for stand-alone stations
with single Auto-LPG Dispenser and above ground storage or 150 square
meters for stand-alone stations with single Auto-LPG Dispenser and underground
storage; such that vehicles being serviced shall at all times be inside the
said business premises.
b. Auto-LPG Dispensing Stations shall only refill LPG containers for
automotive use which conform to the specifications of PNS
04:2006 “Road Vehicles – Automotive LPG Components – Containers” and installed in
the vehicle complying with PNS 05:1983 “Code of
Practice for the use of Liquefied Petroleum Gas (LPG) System in Internal
Combustion Engines”.
c. Auto-LPG Dispensing Stations shall not be allowed to refill cylinders for
household use.
d. Operation of
“self-serve” Auto-LPG Dispensing Station shall not be allowed.
e. Auto-LPG
Dispensing Stations shall conform to the minimum standards and requirements
prescribed hereunder, and such other pertinent rules and regulations, and shall
operate only with a valid SCC as described in Section
6 hereof.
Section 6. STANDARDS COMPLIANCE CERTIFICATE
The
DOE,
through the Oil Industry Management Bureau (OIMB),
shall issue a Standards Compliance Certificate (SCC)
upon the complete submission of and full compliance by the Auto-LPG Industry
Participant with the requirements provided in Section 9 hereof: Provided,
that the issuance of the said SCC does not exempt
such person or entity from securing
DOE’s Certificate of Compliance (COC)
for liquid fuels and any other permit or certificate of quality, health,
safety, security, or environmental clearance from the concerned governmental
agencies or instrumentalities: Provided further, that the Auto-LPG
Industry Participant shall submit to the
DOE-OIMB an authenticated copy of the business/mayor’s
permit within thirty (30) days from the issuance of the SCC,
otherwise the latter shall be deemed revoked.
No
Auto-LPG Industry Participant shall operate until a SCC
is secured from the
DOE-OIMB. The Auto-LPG Industry Participant shall be
deemed engaged in the ILLEGAL TRADING of LPG for automotive use if he/she
operates without the SCC.
Section 7.
CERTIFICATE OF NON-COVERAGE
Auto-LPG garage-based operation shall not be covered by
this Auto-LPG Rules only upon issuance of a Certificate of Non-Coverage (CNC) by the
DOE-OIMB. For
purposes of this Auto-LPG Rules, a garage-based operation shall refer to the
operation of a motor vehicle fleet with at least thirty (30) vehicle units;
parked and serviced in a confined area or garage.
A Certificate of Non-Coverage shall be issued provided
that the owner/operator shall ensure that:
a. They
file with the
DOE-OIMB
a duly acknowledged formal letter of request for a certificate of non-coverage
under these Rules.
b. They present pertinent
LTO/LTFRB documents confirming their fleet with at least
thirty (30) taxi units in operation.
c. They do not
render retailing services as defined and as provided for in Section 5 hereof.
SECTION
8. NON-ISSUANCE, NON-RENEWAL OR
REVOCATION OF STANDARDS COMPLIANCE CERTIFICATE
The
following shall constitute grounds for non-issuance, non–renewal or revocation
of SCC:
a. Failure
to comply with Sections 9, 10, and 11 hereof;
b. Failure to present an authenticated Business/Mayor’s
permit as prescribed in Section 6 hereof;
c. Unjustified refusal to allow entry of authorized
DOE-OIMB inspectors during inspections;
d. Failure to pay fines imposed by the
DOE-OIMB;
e. Violation
of these rules; and
Section 9. DOCUMENTARY
REQUIREMENTS
a.
Prior
to Engagement in Auto-LPG Business:
i.
Business
name, address, telephone/fax number of the business office;
ii.
Proposed
location and complete address of Auto-LPG Dispensing Station;
iii.
Project
or business plan indicating the scope of operation/activity; and
b.
Prior
to Commencement of Construction:
i.
Department of Trade and Industry/Securities and Exchange Commission
registration;
iii.
Zoning/Locational
Clearance;
v.
Barangay Clearance for the proposed location.
ii.
Current Fire Safety Inspection Certificate (BFP);
iii.
PNS Compliance
Statement for Facility Design and Operation;
iv.
List of Auto-LPG station personnel and proof of
training and qualification;
a.
Number of
tanks and type of installation;
b.
Location
and distances between building structures and facilities and equipment;
d.
Perimeter
wall/property boundaries; and
e.
Location
and identification of dispensing unit/s including hose reach zone.
Section 10. REPORTORIAL
REQUIREMENTS
a. For Bulk Suppliers
and/or Haulers
ii.
Quarterly
report of sales to buyers/clients as specified in Item (a.i) above;
iv.
List
of certified personnel.
b.
For
Auto-LPG Dispensing Station:
i.
Quarterly
Sales and Purchase Volume;
iii.
List
of qualified station personnel/attendant as provided for in Section 9(c) of
this Rules.
a.
For
Bulk Suppliers and/or Haulers:
b.
For
Auto-LPG Dispensing Station Owner/Operator:
2)
Compliance to
pertinent provisions of Section on Consumer Safety and Informational Signs;
vi.
The
following shall not be within the hose reach zone of the dispenser:
4)
A
pit or opening into a close drain; and
5)
Basement
or an aboveground tank for flammable liquid.
Section 12. CONSUMER
SAFETY AND INFORMATIONAL SIGNS
Switching
off of cellular phones and other electronic devices while filling;
Other safety signs as may be required by the
DOE, other government agencies and
concerned LGUs.
Section 13. ISSUANCE OF
RECEIPTS
LPG
DISPENSER CALIBRATION AND SEALING
Section 14. IN-SERVICE
CALIBRATION AND SEALING OF LPG DISPENSERS
Section 16. PRODUCT SAMPLING AND TESTING OF AUTO-LPG DISPENSING
PUMPS
ADMINISTRATIVE FINES AND SANCTIONS
Section 22.
FINES/SANCTIONS AGAINST PROHIBITED ACTS
Section 24. INITIATION OF ADMINISTRATIVE PROCEEDINGS
Section 25. INITIATION
OF CRIMINAL ACTS
Section 28. Separability clause
Fort Bonifacio,
Taguig City, February 13, 2007.
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