Promulgating a Revised Rules and Regulations Governing the Business of Retailing Liquid Fuels

November 22, 2017

DOE DEPARTMENT CIRCULAR NO. DC2017-11-0011

PROMULGATING A REVISED RULES AND REGULATIONS GOVERNING THE BUSINESS OF RETAILING LIQUID FUELS

WHEREAS, Republic Act (RA) 8479, otherwise known as the "Downstream Oil Industry Deregulation Act of 1998," mandates the Department of Energy (DOE) to promote fair trade practices, monitor marketing processes and quality of Liquid Fuels and stop the operation of businesses involved in the sale of Liquid Fuels not complying with the national standards of quality;

WHEREAS, Batas Pambansa Blg. (BP) 33, as amended by Presidential Decree No. (PD) 1865, and the Implementing Rules and Regulations therefore, define and penalize certain prohibited acts that are considered inimical to national interest and public safety, including illegal trading in petroleum or Liquid Fuels, hoarding of Liquid Fuels, adulteration and underdelivering, among others;

WHEREAS, DOE Department Circular Nos. 2003-11-010 and 2013-09-0021 establish the minimum requirements for operation of Retail Outlets and prescribe the rules and regulations governing the quality of Liquid Fuels;

WHEREAS, Republic Act No. 9367, otherwise known as the Biofuels Act of 2006, and its Implementing Rules and Regulations, specifically Department Circular No. DC 2007-05-0006, Department Circular No. DC 2011-02-0001, DC 2015-06-0007 and Joint Administrative Order No. 2008-1, Series of 2008, direct the use of biofuels, including the sale and distribution thereof, and define and prescribe the fines and penalties for violation thereof;

WHEREAS, there are persons engaged in the Retailing of Liquid Fuels that do not comply with safe and appropriate technologies, including the use of containers such as in "bote-bote," aboveground storage tanks and mobile Liquid Fuels dispensing pump;

WHEREAS, the Retailing of Liquid Fuels is subject to pertinent permits and licenses issued by government authorities including not limited to, Department of Environment and Natural Resources, Bureau of Fire Protection, Bureau of Internal Revenue and Local Government Units; DaIAcC

WHEREAS, the safe and proper handling, transport, storage, installation and use of equipment and facilities in the downstream oil industry are governed by the pertinent provisions of the different national and international safety codes observed and adopted by the industry;

WHEREAS, the continued use of unsafe and substandard methods of retailing Liquid Fuels (i) exposes the consuming public to fire, danger, health and environmental risks; (ii) denies the public the proper quality and quantity of the Liquid Fuels they purchase; (iii) constitutes unfair competition and unduly deprives legitimate Retail Outlets of additional sales volume; (iv) deprives the government of revenue derived from licensing fees, local business taxes and pump calibration charges, among others; and (v) encourages the marketing of Liquid Fuels sourced from illegal activities such as smuggling, pilferage, theft and the like;

WHEREAS, emerging technologies and economic developments are expanding the nature of the business of retailing of Liquid Fuels which may include electric vehicle (EV) charging, battery swapping, among others;

WHEREAS, Department Circular No. 2003-11-010 and certain provisions of Department Circular No. 98-03-004, otherwise known as the Rules and Regulations Implementing RA 8479, and the Rules and Regulations in the Implementation of BP 33, as amended by PD 1865, need to be further clarified, supplemented, updated and amended and/or repealed, particularly in the conduct of the Liquid Fuels Retailing business;

NOW, THEREFORE, in consideration of the foregoing premises, the following Rules are hereby promulgated to govern the Retailing of Liquid Fuels.

RULE I

General Provisions

SECTION 1. Title. — This Department Circular shall be known and cited as "Promulgating a Revised Rules and Regulations Governing the Business of Retailing Liquid Fuels" or "Revised Retail Rules."

SECTION 2. Coverage. — The Revised Retail Rules shall apply to all persons engaged or intending to engage in the business of Retailing Liquid Fuels.

SECTION 3. Definition of Terms. — Except as provided below, the terms used in these Revised Retail Rules shall have the same meaning as the terms used in Department Circular No. 98-03-004, as amended (Implementing Rules and Regulations of the Downstream Oil Industry Deregulation Act of 1998):

a. API — shall refer to the American Petroleum Institute;

b. Appropriate container — shall refer to portable containers that adhere to any existing international standard specifically American Society for Testing Materials (ASTM) such as, Designation: F852-99, Standard Specification for Portable Gasoline Containers for Consumer Use and Designation: F 976-02, Standard Specification for Portable Kerosene and Diesel Containers for Consumer Use, as well as the designs to be subsequently established and issued by the Department; TAacHE

c. BFP — shall refer to the Bureau of Fire Protection;

d. Bote-bote — shall refer to the manner of retailing and dispensing of Liquid Fuels using soda bottles, plastic containers, jugs, aboveground tanks, portable tanks, road tankers or vehicles or other similar portable containers not intended for storage of flammable Liquid Fuels, and/or to the manner of retailing and dispensing of Liquid Fuels using the said containers;

e. Calibration — shall refer to the process of checking, adjusting, or determining by comparison with a standard the condition of the dispensing pump to ensure delivery of accurate quantity of Liquid Fuels;

f. Company — as used in this Circular, shall refer to an oil company or an entity, engaged in any or a combination of activities in the Downstream Oil Industry, other than purely operating a Retail Outlet;

g. Dispensing — shall refer to the act of transferring Liquid Fuels from the dispensing pump or "bote-bote" containers to the vehicles of motorists, end users or other consumers;

h. Dispensing pump — shall refer to an equipment used to deliver or dispense Liquid Fuels and which is installed in a forecourt/curb area within the Retail Outlet which is composed of a dispensing nozzle and a volumetric meter;

i. DENR — shall refer to the Department of Environment and Natural Resources;

j. DOE — shall refer to the Department of Energy;

k. Field Offices — shall refer to the DOE Field Offices in Pangasinan (Luzon Field Office), Cebu (Visayas Field Office) and Davao (Mindanao Field Office) and to other field offices that may subsequently be created;

l. LGU — shall refer to Local Government Unit;

m. Liquid Fuels — shall refer to gasoline, diesel, and kerosene;

n. NML — shall refer to the National Metrology Laboratory of the Department of Science and Technology Industrial-Technology Development Institute;

o. OIMB — shall refer to the Oil Industry Management Bureau of the Department of Energy;

p. Person — shall refer to any person, whether natural or juridical, who is engaged in any activity of the downstream oil industry; HDICSa

q. PNS — shall refer to the Philippine National Standard;

r. Retailing — shall refer to the act of selling and/or dispensing Liquid Fuels by the Retail Outlet directly to the motorists, end-users or other consumers;

s. Retail Outlet — shall also refer to a dispensing station, refilling station facility or business establishment which sells or dispenses Liquid Fuels directly to motorists, end-users or other consumers;

t. Retail Outlet Official — shall refer to the dealer, operator, owner or proprietor of the Retail Outlet or in their absence, the manager, supervisor, team leader or any responsible person acting as such;

u. Tank Truck — shall refer to any single self-propelled motor vehicle with or without a trailer, equipped with a cargo tank mounted thereon or built as an integral part thereof, and used for the transportation or handling of Liquid Fuels; otherwise known as lorry and road tanker;

v. Test Measure — shall refer to a calibration bucket that is used to measure the quantity of Liquid Fuels; and

w. UGT — shall refer to underground storage tank.

RULE II

Certificate of Compliance and Certificate of Non-Coverage

SECTION 4. Issuance of Certificate of Compliance (COC) and Certificate of Non-Coverage (CNC). —

a. No person shall engage or operate the business of Retailing Liquid Fuels without first securing a valid Certificate of Compliance (COC) from the Oil Industry Management Bureau (OIMB) or its counterparts in the Field Offices.

Those engaged in the business but have not secured or have not submitted the complete requirements necessary for the issuance of a valid COC under the DOE DC 2003-11-010 shall be considered as new applicants and shall be covered by this Rules.

The OIMB or the Field Offices shall issue a COC for each Retail Outlet upon the complete submission of and full compliance by the Retail Outlet with the requirements provided in the provisions of this Rules and payment of the required fees.

The OIMB or the Field Offices shall have the authority to verify, validate, authenticate and inspect all documents and information required from, given by or obtained from such person for compliance with all applicable laws, rules and regulations.

The OIMB or the Field Office may conduct field validation to a new Retail Outlet prior to the issuance of the COC. IDaEHC

b. In situations where an LGU shall require a COC as a prerequisite to a Mayor's or Business Permit, a Certification may be issued to a new Retail Outlet solely for that purpose of obtaining the Mayor's or Business Permit: Provided, That an authenticated copy of the Mayor's or Business Permit is submitted to the OIMB or the Field Offices within thirty (30) days from issuance of the Certification, otherwise the latter shall be deemed automatically revoked and the Retail Outlet shall immediately cease to operate. Provided, further, that, a Certification may be renewed should there be a delay in the issuance of the Mayor's or Business Permit.

c. Storage and dispensing of Liquid Fuels that are for own-use operation shall not be covered by this Revised Retail Rules only upon issuance of a Certificate of Non-Coverage (CNC) by the DOE. For purposes of this Revised Retail Rules, own-use operation shall refer to the operation of a motor vehicle fleet.

A CNC shall be issued provided that the establishment or entity shall ensure that:

1. They file with the OIMB or the Field Offices a duly-acknowledged formal letter request for a CNC under these Rules;

2. They present a Feasibility Study indicating, among others, number of vehicles and financial viability of putting up such establishment;

3. They submit valid Membership Agreement and latest Supply Agreement or Certification issued by an OIMB-registered distributor and/or supplier;

4. They present pertinent LTO/LTFRB/LGU documents confirming their fleet;

5. They do not provide retailing services as defined and as provided for in Section 3 hereof;

6. Their dispenser/s does not have "money wheels" or "price indicators." For purposes of this Revised Retail Rules, a "money wheel" is the price-indicating device of the Liquid Fuels dispensing pump that indicates the amount corresponding to the volume of product dispensed from the nozzle; and

7. Their station shall only dispense Liquid Fuels to the vehicles of their members as identified through a distinguishing mark in their vehicles and membership identification cards.

Storage and Dispensing of Liquid Fuels for Own-use shall be subject to the extended responsibility of the Liquid Fuels distributor and supplier. The distributor and supplier of Liquid Fuels shall ensure compliance of the storage tanks and dispensing pump to existing international and local standard. DTCSHA

Notwithstanding the issuance of a CNC, the OIMB and the Field Offices can, at their discretion, monitor and conduct verification and validation on the operation of the establishment. The CNC does not preclude compliance with PNS/DOE FS 1-1:2005 "Petroleum Products — Retail Outlet — Health, Safety and Environment" and with the requirements of other government agencies.

SECTION 5. Validity of the COC. — The COC shall have a validity of five (5) calendar years reckoned from the date of its effectivity and shall be in full force and effect unless sooner revoked or suspended pursuant to the provisions of this Circular.

SECTION 6. Documentary Requirements. — A prior notice, through an application for the issuance of COC for each Retail Outlet, shall be accomplished under oath and filed with the OIMB or the Field Offices by the applicant and shall contain the following information and supporting documents which shall be submitted in their original forms for verification, or if the submission of the original copy is not possible or warranted, in duly-certified true copies by the issuing agency. Only applications with complete and valid supporting documents shall be accepted and processed.

In the event that the applicant has a proof of a pending application to other government agencies, the OIMB and the Field Offices may accept and process the application. The corresponding COC shall only be issued upon submission of the government permits/clearances.

a. Application

1. Filled-up duly-notarized application form complete with the following information:

a) Business name, address, telephone/fax number and e-mail address of the business office;

b) Location and complete address of the Retail Outlet; and

c) Name of dealer or retailer in case of single proprietorship, or partners in case of partnership, or authorized representative in case of corporation.

2. A Notice of Undertaking on liability in case of violations committed by dealer, operator, owner or proprietor.

b. Supporting Documents

1. Certification from distributor/supplier/dealer's agreement;

2. Notarized Statement that the facility design and operation of the Retail Outlet is PNS-compliant signed by the Engineering Procurement Construction Contractor and Dealer/Owner of the Retail Outlet; CScTED

3. List of dispensing pumps/hoses and underground storage tank/s with corresponding capacity/ies;

4. Scaled lay-out plan showing the island/dispensing pumps, underground storage tanks, cashier's booth and other facilities;

5. Accomplished DOE Form on Undertaking;

6. Latest photographs (in 5R size) showing the full/front, right, and left side views including price display boards, safety informational signs and required stickers/labels for RON, E-10, B-2, among others;

7. DOE SCC/COC Clearance of No Pending Case, as applicable; and

8. Payment of fee.

c. Reportorial Requirements. Any Person or entity who is engaged in the retailing business of Liquid Fuels shall submit every 30th day of January, under oath, copies of the following:

1. Data on Purchase and Sales Volume per Retail Outlet; and

2. Authenticated copy of distributor/supplier/dealer's agreement, if previous is expired.

Failure to comply with the Documentary Requirements shall constitute a violation of this Section and punishable under Section 29 of this Rules.

SECTION 7. Renewal of COC. —

a. The Retail Outlet shall file the application for the renewal of the COC not later than one (1) month before the expiration date. The following shall be submitted to the OIMB or the Field Offices:

1. Photocopy of previous COC;

2. DOE SCC/COC Clearance of No Pending Case, as applicable;

3. Payment of fee; and

4. A Notice of Undertaking on resumption of liability in case of violations committed by previous dealer, operator, owner or proprietor.

After the expiration of the COC, any application to operate the Retail Outlet shall be treated as new application.

b. A change in the dealership, retailership, ownership or proprietorship of a Retail Outlet shall not automatically transfer the COC of the previous Retail Outlet Official to the new one. The new Retail Outlet Official shall file for a new COC, submit the pertinent documents pursuant to this and pay the required fees. cDCEIA

SECTION 8. Non-Issuance, Non-Renewal, Revocation or Suspension of COC. — The OIMB or the Field Offices shall have the authority to deny the issuance or renewal of a COC or to revoke or suspend the same on any of the following grounds:

a. Refusal to allow inspection by OIMB or the Field Offices;

b. Failure to present required records during inspection, or upon order by the OIMB or the Field Offices e.g., calibration record, record of product deliveries to the Retail Outlet showing the distributor/supplier(s), product details and date;

c. Submission of falsified documents;

d. Failure to pay fines imposed by the DOE;

e. Commission of the same prohibited act for at least a second time; or

f. Failure to comply with circulars and administrative issuances promulgated by the DOE; or

g. Failure to present related government permits/clearances such as, Mayor's/Business Permit, Locational/Zoning Clearance, Fire Safety Inspection Certificate and Environmental Compliance Certificate, if applicable.

An order of Suspension or Revocation and Termination may be issued when any of the circumstances upon which the COC was issued no longer exists, modified or voided, become impossible, or any analogous circumstances.

A Retail Outlet that continues to operate/engage in the business of retailing Liquid Fuels after an Order of Revocation or Suspension of business will be recommended to the concerned Local Government Unit for revocation or suspension of its Mayor's or Business Permits.

SECTION 9. Posting of COC. — The COC shall be prominently displayed in the Retail Outlet in a conspicuous location for easy viewing/inspection by its customers and the public. The failure to post COC shall constitute Illegal Trading.

SECTION 10. Requirements for Haulers for Own-Use. — A dealer, operator, owner or proprietor of the Retail Outlet who owns a tank truck to transport Liquid Fuels for its retailing business, whether by land or via sea-cargo vessel from their sources directly to their own Retail Outlet shall be issued with a Certification by the OIMB or the Field Offices for that purpose. Such Certification shall be issued upon submission of a completely filled-out application form that indicates:

a. LTO Registration OR/CR;

b. DOST Calibration Report;

c. Permit to Transport Flammable Liquids by Tank Truck or Conveyance Permit;

d. Copy of COC of Retail Outlet, as applicable; and DHESca

e. Payment of fee.

RULE III

Standards and Requirements

SECTION 11. Mandatory Standards and Requirements for New Retail Outlets. — The applicant for COC shall strictly comply with all the standards and requirements prescribed in the PNS specifically on the following features:

a. Fixed and Permanent Dispensing Pump

1. Dispensing pumps shall be located six (6) metres from any potential source of ignition;

2. There shall be no open flame within 15 metres unless provided with an adequate safety barrier/enclosure, such as but not limited to glass enclosure and perimeter wall, separating the open flame from the dispensing pump and comply with the requirements under the Republic Act 9514 otherwise known as the "Fire Code of the Philippines of 2008";

3. Dispensing hose shall have a maximum length of 5.5 metres (18 ft.); and

4. Dispensing pump shall accurately display both the volume of Liquid Fuels dispensed (in litres) and the corresponding amount (in Pesos), up to two (2) decimal places.

b. Forecourt

1. Pump Island (Single pump)

a) Minimum dimension shall be 3.5 metres x 1.2 metres;

b) Lane-oriented pump should have a minimum distance of 0.05 metres from fixed object; and

c) Pump guard, or its equivalent (e.g., column post), serving as safety barrier and can withstand vehicular impact for the dispensing devices shall be present.

Edge to edge distance between pump islands shall be 6 metres measured along the lane and 6 metres from side to side;

2. Ingress and Egress

a) The minimum width of the ingress and egress for the Retail Outlet shall be 7 metres (23 ft.), for each, based on the standard car and large vehicle turning radii; and

b) At any given time, the Retail Outlet shall only serve the vehicles and tank trucks it can accommodate within its premises. TEHIaD

c. Facilities

1. There shall be Office/Cashier's booth;

2. Canopy shall have a minimum height of 4.5 metres from floor line to canopy ceiling;

3. Boundary walls shall be made of hollow concrete blocks or cyclone fence;

4. A master switch shall be installed at a central control point that will disconnect the electric power to all dispensing pumps in case of emergency; and

5. There shall be clean Restrooms adequately provided with toiletries and running water. Restrooms must accommodate the motorists for as long as the station is open for business.

d. Signages and Labels

1. Outlet's identification shall display the oil company's brand or trade name and trademark;

2. Price display board shall contain and display updated prices of each Liquid Fuels sold in the Retail Outlet, pursuant to Rule V, Section 18a (1) of Department Circular No. 98-03-004;

3. Pump labels on Liquid Fuels type such as RON, E10 and Bx, where X shall refer to the % biodiesel in the fuel, shall be posted;

4. Consumer safety and informational signs shall be displayed and posted; and

5. Other safety signs as may be required by the OIMB, other government agencies and relevant LGUs shall be posted and displayed.

e. Underground Storage Tank (UGT). All Liquid Fuels shall be stored in UGTs, along with a fill sump and monitoring wells.

1. Distance to property line and adjoining structure shall not be less than 1.0 metre; and

2. Vent lines (3.65 metres minimum), monitoring wells and fill sump (rain tight) shall be present.

SECTION 12. Retail Outlet Categories. — The following are the Categories of Retail Outlets based on the number of pump islands, dispensing pumps and other facilities and services.

a. Category 1 — Retail Outlet with 1-2 pump islands and at least 1-2 dispensing pumps per island installed. DETACa

1. With clean restroom

2. Provision for free tire pressure air filling

3. Sufficient water for radiator

4. First aid kits

b. Category 2 — Retail Outlet with 3-4 pump islands and at least 3-4 dispensing pumps installed.

1. With clean restroom

2. Provision for free tire pressure air filling

3. Sufficient water for radiator

4. Basic mechanical services

5. First aid kits

c. Category 3 — Retail Outlet with 5 or more pump islands installed.

1. With clean restroom

2. Provision for free tire pressure air filling

3. Sufficient water for radiator

4. Basic mechanical services

5. First aid kits

6. With designated evacuation assembly area

Retail Outlets may install electric vehicle charging facilities in any of the above-mentioned outlet categories, provided that safety controls are in place, and without prejudice to any agreement, rules, and guidelines that may be issued by the Department, or any government agency and instrumentality, for the operation of the electric vehicle charging facilities.

Payment of application and renewal fees shall be in accordance to these categories.

SECTION 13. Minimum Facility Requirements for Existing Retail Outlets. — All existing and operating Retail Outlets prior to the issuance of this Revised Retail Rules shall comply with the following mandatory requirements:

a. Dispensing pump shall be fixed and permanent;

b. Product deliveries and retailing of Liquid Fuels shall be conducted only within the premises of the Retail Outlet; and

c. All Liquid Fuels shall be stored in underground storage tanks, along with a tank sump able to contain spills and leakage.

SECTION 14. Fuel Storage, Handling, Transfer and/or Dispensing. — The storage, handling, transfer and/or dispensing of Liquid Fuels shall be subject to the following: TaDCEc

a. Liquid Fuels shall be delivered, received and dispensed at all times only within the business premises of a Retail Outlet;

b. Liquid Fuels shall be transferred only from UGT by means of fixed dispensing pumps designed and equipped to allow the controlled flow of the Liquid Fuels and prevent leakages or accidental discharges;

c. Liquid Fuels shall only be dispensed to appropriate containers as defined in Rule I Section 3. The use of appropriate container may be allowed provided the Liquid Fuels Retail Outlet shall provide appropriate containers;

d. with the condition that it is for emergency and not for commercial purposes;

e. Liquid Fuels shall be sold in appropriate containers;

f. Liquid Fuels shall not be discharged into any street, highway, drainage canal or ditch, storm drain or flood control channel, lake or tidal waterway, or directly into the ground;

g. Liquid Fuels shall be sold and dispensed to customers regardless of quantity and amount, directly to the vehicles' fuel tank;

h. An official receipt shall be issued after every sale of Liquid Fuels; and

i. Liquid Fuels shall be sold consistent with the price indicated in the dispensing pump and the price display board.

In addition, a Retail Outlet or company or any entity/person who supplies Liquid Fuels to any person selling or dispensing such Liquid Fuels through the use of drums, barrels, bottles, or "bote-bote," shall be deemed to be committing Illegal Trading. However, the use of drums may be allowed for customer's own use in pre-identified situations and where a duly-notarized certification attesting to the fact is presented.

RULE IV

Other Types of Retail Outlet and Their Requirements

SECTION 15. Types and Facility Requirements. —

As may be necessary and practicable, the following types of Retail Outlets may be exempted by the DOE from compliance with the mandatory standards and requirements provided in Section 11:

a. A Marine Retail Outlet, which is constructed near the shoreline and intended exclusively to serve the fuel requirements of marine vessels such as small motor boats and bancas. It shall cater exclusively to marine vessels and it shall be exempted from the UGT requirement, provided that the aboveground storage tank shall be constructed using materials and technology that can withstand sea-water or corrosive atmosphere and actions of waves on the shoreline, enclosed with bund walls on all sides with an enclosure volume of at least 120% of the net capacity of the largest tank and the bund walls should be made of corrosion-resistant material (i.e., concrete), and compliant with designs established and to be subsequently issued by the Department. cDEHIC

b. Technology-Solution Retail Outlet, which is a result of emerging technologies that address the requirement of Liquid Fuels. The materials are manufactured in accordance to the facilities and product safety certifying bodies such as, UL-listed and equivalent NRTL safety marks (USA), CE marking (UK and EU), RCM, regulatory compliance mark (Australia), PSE (Japan), among others.

However, the said Retail Outlet shall observe the following requirements:

1. Shall address the fuel requirements of those catered by the "bote-bote" retailing in the area applied for, as certified by the concerned LGU;

2. A distance of 1 kilometre radius from another Retail Outlet shall be observed;

3. No other commercial establishment shall be installed/constructed within the Retail Outlet other than those necessary for its operation;

4. The vehicle being serviced and the delivery of the Liquid Fuels by the Tank Truck shall at all times be inside the business premises;

5. One (1) metre set back distance shall be maintained in the following:

6. Cashier's booth or dispensing pump to firewalls; and

7. During the supply operation of Tank Truck, there should be one (1) metre working distance that should be maintained from the Tank Truck to firewalls.

The Marine Retail Outlet and Technology-Solution Retail Outlet are not exempted from applying for a COC and compliance to other government requirements.

c. Temporary Emergency Retail Outlet. Upon written notice to OIMB with endorsement from the LGU, the Temporary Emergency Retail Outlet may operate for a period of 15 days, in areas declared as under a state of calamity/emergency and where no Retail Outlet can serve as a result of the prevailing circumstances under emergency or calamity. The designs shall be compliant with established standards to be subsequently issued by the Department.

A request for renewal and extension shall be covered by Special Permit from the OIMB upon receipt of justification by OIMB from the Retail Outlet, and an endorsement by the LGU. The LGU may set its own criteria and conditions for this type of Retail Outlet to operate. ISCDEA

RULE V

OIMB Monitoring and Inspection

SECTION 16. Conduct of Inspection. — Duly-authorized inspectors from the OIMB or the Field Offices shall undertake random and unannounced inspections to conduct, among others, checking/testing of dispensing pumps, sample taking and product testing on-site or at the DOE laboratory.

The Retail Outlet Official shall maintain a responsible person who shall be present in the Retail Outlet at all times and, for this purpose, the Retail Outlet Manager, Supervisor, Team Leader or any person acting as such shall be considered as a responsible person before whom the duly-authorized inspectors can present their proper identifications and under whose authority the inspection shall proceed.

SECTION 17. Sample Taking by the OIMB or by the Field Offices for Testing at the DOE Laboratory. —

a. Authorized inspectors from the OIMB or the Field Offices shall be allowed to gather one (1) litre sample of Liquid Fuels per product which the Retail Outlet is offering for sale directly from the dispensing pumps, for product quality testing at the DOE laboratory to ensure compliance with quality standards.

b. Laboratory test results indicating non-compliance with quality standards pursuant to the PNS and the Biofuels Act of 2008 and its Implementing Rules and Regulations shall constitute ADULTERATION.

SECTION 18. Sample Taking by the OIMB or by the Field Offices for On-Site Product Sampling and Testing. — On-site sampling and testing of Liquid Fuels samples using the DOE's Mobile Monitoring and Testing Laboratory and the consequent penalties and sanctions shall be governed by the provisions of DC No. DC-2015-06-0006.

SECTION 19. Retention of Product Samples. — The Retail Outlet Official shall retain its own duplicate samples of the samples obtained and duly sealed by the inspectors from the OIMB or the Field Offices during the inspection for purposes of its own product quality testing. It shall be responsible for providing his own sampling battle.

SECTION 20. Discrepancy in Results of Testing and Resolution Thereof. — In case the Retail Outlet Official and/or Retail Outlet opts to contest the results of the DOE laboratory, or to subject its retained fuel samples to a simultaneous testing, it may do so at its own expense within the three (3) months validity period of the retained fuel samples reckoned from the date the samples are endorsed/turned over to the DOE laboratory, and with an accredited testing laboratory acceptable to the DOE and in the industry. The results of the test and analysis, for purposes of determining compliance with the PNS shall be deemed to be conclusive. The 3rd party laboratory result will only be used for appeal purposes.

Analytical laboratory equipment to be used for testing of contested Liquid Fuels should be calibrated and/or correlated with the DOE laboratory equipment (GRTL/MMTL). Liquid Fuels samples should be tested using the reference test methods prescribed in PNS/DOE QS. EDCTIa

SECTION 21. Underdelivering in Dispensing Pumps. —

a. The quantity of Liquid Fuels delivered by dispensing pumps at Retail Outlets as measured by the dispensing pump meter shall not be less than the actual quantity by more than fifty (50) milliliters for every ten (10) liters as measured by the DOE Test Measure certified and sealed by the DOST-ITDI.

The Test Measure shall be filled to the ten (10)-liter mark three (3) times at low, medium and fast flow rates and the average quantity as measured by the pump meter shall constitute the quantity to be compared with the actual quantity of ten (10) liters.

b. The Retail Outlet Official shall have the right to examine that the DOE Test Measure has the updated seal and issued by the NML.

c. The particular dispensing pump shall be immediately closed by the inspectors of OIMB or by the Field Offices by posting an "Out-of-Order" signor installing a padlock to prevent the said pump from further dispensing products to the public until it is recalibrated. The said sign or padlock can only be removed by the Authorized Calibrating Entity as provided in Section 24 of this Rules.

In the event that an "Out-of-Order" sign is posted by the Retail Outlet, such must be supplemented by a notice/request for recalibration to the LGU or by the Authorized Calibrating Entity.

d. The unauthorized removal of an "Out-of-Order" sign or padlock locking the pump that is found underdelivering shall constitute a presumption that the pump is actually being used to sell Liquid Fuels and shall be deemed committing the offense of ILLEGAL TRADING. A dispensing pump found with broken or no seal and with no "Out-of-Order" sign or padlock placed/posted/pasted on it shall constitute ILLEGAL TRADING.

In addition, the absence of an "Out-of-Order" sign or padlock shall give rise to the presumption that the Retail Outlet is actually selling Liquid Fuels and shall be deemed committing the offense of ILLEGAL TRADING.

SECTION 22. Posting of Signages and Labels. —

a. Retail Outlet shall have posted or displayed prominently and conspicuously and at the immediate sight of the motorist the following signages and labels:

1. Price display board with updated prices for each Liquid Fuels;

2. Price display board with the same updated prices in the dispensing pump. For special promotions, a designated lane must be assigned and the announcement of such promotion is prominently displayed in the Retail Outlet; ADCIca

3. Product quality label, such as RON, E10 and Bx, posted at the dispensing pumps;

4. Biodiesel blend (Bx) and the phrase "This diesel contains X% CME"; and

5. E-Gasoline Fuel specifications

a) Regular grade — 91 RON, Minimum — Green

b) Premium grade — 95 RON, Minimum — Red

c) Premium plus grade — 97 RON, Minimum — Blue

b. The use of the terms "unleaded," "lead-free," and other similar brand names in the labeling at the display boards, pumps, and other marketing tools to the public shall no longer be allowed to avoid the impression that the Philippines still has leaded gasoline.

c. Retail Outlet shall likewise have posted in strategic and appropriate locations within the premises of the Retail Outlet the following consumer safety and informational signs:

1. Do not use cellular phone while filling;

2. No smoking;

3. Switch-off engine while filling;

4. No straddling (motorbike/tricycle); and

5. Other safety signs as may be required by the OIMB and other government agencies.

RULE VI

Liquid Fuels Quantity Standard

SECTION 23. Calibration and Sealing of Dispensing Pumps. — To ensure that facilities and equipment used in the operation of Retail Outlets remain accurate, calibration shall be mandatory. All dispensing pumps used in Retail Outlets to dispense Liquid Fuels sold to the public must be properly calibrated once every ninety (90) days, and after calibration immediately sealed by an authorized entity. Immediate calibration shall also be conducted if the dispensing pump is found underdelivering, as provided under Section 21 or during the weekly calibration verification, as provided under Section 25.c.

The failure of the Retail Outlet Official and of Retail Outlet to have the dispensing pumps calibrated shall constitute UNDERDELIVERING notwithstanding the fact that the dispensing pumps are actually not underdelivering.

SECTION 24. Authorized Calibrating Entities and Its Roles. — The authorized calibrating entities are the City or Municipal Treasurer, or in their absence or incapacity, the National Metrology Laboratory (NML) of the Industrial Technology Development Institute (ITDI), Department of Science and Technology (DOST) or, in its absence, the oil company or a third party contractor. ACTIHa

In case that calibration shall be done by the oil company or a third party contractor, it shall obtain a certification from the City or Municipal Treasurer or NML ITDI DOST that the latter are unavailable or incapable of doing the calibration.

SECTION 25. Test Measure Requirement in All Retail Outlets. —

a. OIMB or the Field Offices shall inspect and verify the dispensing pump using a valid Test Measure to check for possible underdelivering.

b. All Retail Outlets shall maintain a 10-litre Test Measure, which must be inspected, calibrated, verified, adjusted, as necessary and resealed once every twelve (12) months by the NML of the ITDI, DOST and DOST regional calibration laboratories.

c. The Retail Outlet Official shall verify the accuracy of the dispensing pump using a valid Test Measure and keep a written record or logbook of its weekly readings. The periodic calibration by the Retail Outlets shall guide them as to whether they have to request for the LGU calibration earlier than their schedule. The written record or logbook shall be duly-signed by the authorized calibrating entity and countersigned by the Retail Outlet Official or his authorized representative and shall be maintained at all times in the Retail Outlet premises and presented to OIMB or the Field Offices and to the public upon demand thereof.

d. The Retail Outlet Official shall ensure that the authority performing the calibration shall install a seal after calibration to guard against unauthorized adjustment of the dispensing pump meter, which seal shall not be broken until the next calibration by an authorized entity. Breaking the seal for the purpose of calibration by an entity other than the LGU shall have prior authorization by the LGU otherwise, unauthorized breaking of the seal shall constitute the offense of ILLEGAL TRADING.

Failure to maintain a NML calibrated and sealed Test Measure, or the duly documented and signed and countersigned written record or logbook, or maintaining or using dilapidated, unserviceable, expired or uncalibrated Test Measure notwithstanding the fact that the dispensing pumps are not actually underdelivering shall constitute ILLEGAL TRADING.

SECTION 26. Sealing of the Dispensing Pump by the LGU. —

a. Only the LGU or the authorized persons enumerated in Section 24 can affix the seal after the calibration, and conversely to break the seal. Calibration and the breaking of the seal by an entity other than the LGU or those enumerated in Sec. 23 shall constitute UNDERDELIVERING. HCSAIa

b. The seal shall be installed either in the metering unit and mechanical or electronic adjustment device by the authorized persons performing the calibration to guard against the unauthorized adjustment of the dispensing pump.

c. The Retail Outlet or Retail Outlet Official shall ensure to sell and dispense Liquid Fuels to customers regardless of quantity and amount, directly to their vehicles' fuel tank.

RULE VII

Liquid Fuels Quality Standards

SECTION 27. Product Quality. — Only Liquid Fuels complying with the Philippine National Standard (PNS) and Biofuels Law shall be sold in a Retail Outlet.

SECTION 28. Testing and Retention of Samples of Liquid Fuels by the Retail Outlet. — In order to protect against the delivery of adulterated products, a Retail Outlet may do either of the following:

a. The Retail Outlet shall take at least one (1) litre sample from the Tank Truck of each Liquid Fuels delivered to his Outlet. The samples shall be placed in clear bottles and sealed in the presence of the Tank Truck driver who shall verify the taking of the sample by signing on the invoice. The sample shall be safely stored by the Retail Outlet for at least five (5) days or until the next delivery thereafter, whichever is shorter. A record of the Certificate of Quality per delivery of Liquid Fuels shall also be maintained.

The Retail Outlet shall provide its own sampling bottle for purposes of retaining a duplicate sample for its own product quality testing for verification for every delivery from its supply source and for OIMB's or the Field Offices' inspection and sampling.

RULE VIII

Prohibited Acts, Administrative Fines and Sanctions

SECTION 29. Fines/Sanctions against Prohibited Acts. — In addition to the right and authority of the OIMB or the Field Offices to suspend and revoke the COC as provided in this Circular, the Retail Outlet Official and/or Retail Outlet that commits the prohibited acts shall be imposed the following penalties:

SECTION 30. Initiation of Administrative Proceedings. — Any individual or group may initiate administrative proceedings with the DOE against the Retail Outlet Official and/or Retail Outlet committing any of the prohibited acts defined or provided in this Department Circular in accordance with DOE Circulars; Provided: That, the DOE may, motu proprio, proceed administratively against any Retail Outlet who does not comply with this Department Circular pursuant to said DOE Circulars. CaSAcH

SECTION 31. Initiation of Criminal Action. — The initiation of an administrative action or the imposition of any fine against any Retail Outlet who violates or does not comply with this Department Circular shall be without prejudice to the filing of any criminal action against such Retail Outlet pursuant to BP 33, as amended and RA 8479, and other applicable laws, rules and regulations.

RULE IX

Final Provisions

SECTION 32. Transitory Clause. — All existing Retail Outlets that have fully-complied with the prior notice requirements of the DOE pursuant to Department Circular 98-03-004 shall be given six (6) months from effectivity of these Retail Rules to fully comply with the provisions hereof.

Taking into consideration public safety, the DOE reserves the right to issue appropriate and separate regulations relative to the conduct of EV charging stations, battery swapping and other similar activities. Any Retail Outlet may only engage in such activities after notification to the DOE.

SECTION 33. Review Clause. — In light of the dynamic nature of the industry, the DOE shall periodically review, update and issue the necessary rules relative to the operation of the sector. OIMB shall coordinate with the Energy Utilization Management Bureau (EUMB) for EV related activities.

SECTION 34. Separability Clause. — Should any provision herein be declared invalid or unconstitutional by a court of competent jurisdiction, the same shall not affect the validity of the other provisions not so declared.

SECTION 35. Repealing Clause. — DOE Circular No. 2003-11-010 is hereby deemed repealed. All other DOE Circulars, issuances, and rules and regulations inconsistent with this Circular or any part hereof, are hereby deemed repealed or modified accordingly.

SECTION 36. Effectivity. — This Department Circular shall take effect fifteen (15) days from the date of its complete publication in two (2) newspapers of general circulation.

Done this _______________, Energy Center, Bonifacio Global City, Taguig City.

(SGD.) ALFONSO G. CUSISecretary