THE standards for licensing Liquefied Petroleum Gas (LPG) businesses emerged as a sticking point during hearings for a proposed bill regulating the industry, with most members of the industry not complying with the Department of Energy’s (DoE) requirements in 2019.
DoE representatives testified before the Senate Energy Committee that a majority of LPG businesses — 548 out of 912 — do not possess a DoE compliance certificate, based on inspections carried out in 2019.
The panel was hearing resource persons in the process of legislating the proposed LPG Act (Senate Bill 1188, sponsored by the committee’s chairman, Senator Sherwin T. Gatchalian.
The director of the DoE’s Oil Industry Management Bureau (OIMB), Rino E. Abad said the bill must outline requirements for operating based on Philippine National Standards (PNS).
“We need to identify… what are the standards provided for as provisions in the PNS that will be applicable only or within the jurisdiction only of the DoE,” he said, noting that many other agencies also enforce PNS, which are developed by the Department of Trade and Industry’s Bureau of Philippine Standards.
Mr. Abad said the main issues for those operating LPG businesses are standards governing pressure vessels, LPG cylinders and canisters, and bulk storage tanks, among others. It also wants to include in the bill a safety code, currently being developed by DTI-BPS.
“Kasi ang kulang po ngayon sa regulation — ang nandoon puro po (The regulations currently consist of) prohibited acts which is a very bad way of… improving (the industry’s) operations,” he said.
OIMB will specify which of the PNS standards it will take responsibility for. “What we will do is to attempt… na i-delineate na ang amin (to delineate what is ours) and we will go back to the technical committee to confirm the list,” the bureau director said.
“We will put in the law the exact documents that should be promulgated and who will promulgate it para (so it’s) clear,” Mr. Gatchalian replied.
On the failure of most businesses to seek the DoE’s certification of compliance, Mr. Abad said businesses might have been content to obtain business permits from local government units (LGU).
“There seems to be some kind of miscommunication… kasi nabibigyan pa sila ng (because they are being given) business permits to operate, so mayroon ding kailangang (there is also a need for) coordination with the LGU,” Mr. Abad said.
“Hindi lahat ng LGUs at building officials kabisado kung ano ang requirements ng DoE (Not all LGUs and building officials are well-versed with the department’s requirements) when it comes to LPG facilities. We can embed that in the law,” Mr. Gatchalian said.
The OIMB proposed that local governments harmonize their regulations with the DoE’s.
The proposed LPG Law designates the DoE as its lead implementor, empowering the department to enforce quality and safety standards prescribed in the PNS and to issue licenses to operate.
Industry representatives at the hearing expressed concerns about over-regulation.
The Philippine LPG Association’s Richard Yao said the bill also recognizes the regulatory power of agencies not involved in the process previously.
“There are certain other new government agencies included right now… which before were not included as part of regulating the industry,” Mr. Yao told the committee.
He cited the proposed role of the Department of Transportation (DoTr), which Mr. Yao said does not have the technical capacity to certify LPG transport.
“We have to be cautious in terms of issuing out or providing police powers to agencies without the technical knowledge,” he said.
“We feel the industry is a work in progress and the standards need to be set in place.”
The bill provides that motor vehicles transporting LPG and filled LPG cylinders should first obtain a Certificate of Road Worthiness from the Land Transportation Office before the issuance or renewal of a license to operate.
Mr. Gatchalian asked the BPS to conduct an industry analysis to regulate cylinders and canisters and ensure safety of consumers.
“It’s about time we look into this matter very seriously… Even in the absence of the law we have to make sure that our homes are safe… maraming accident nangyayari dahil sa (There are many accidents caused by) LPG, especially dahil sa generic o lumang LPG cylinders (because some of the cylinders are generic or old).” — Adam J. Ang, Charmaine A. Tadalan
