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Republic of the Philippines
a DEPARTMENT OF ENERGY
yt (Kagawaran ng Enerhiya)

DEPARTMENT CIRCULAR NO. _DC2023-05- OIF p-

PRESCRIBING THE GUIDELINES ON THE PHILIPPINE TRANSPORT
VEHICLES FUEL ECONOMY LABELING PROGRAM (VFELP) FOR
COMPLIANCE OF VEHICLE MANUFACTURERS, IMPORTERS,
DISTRIBUTORS, DEALERS, AND REBUILDERS

WHEREAS, Section 2 of Republic Act (RA) No. 7638, as amended, or the Department
of Energy (DOE) Act of 1992 states that it is the policy of the State to ensure a
continuous, adequate, reliable, and economic supply of energy through, among
others, judicious conservation, renewal, and efficient utilization of energy, to keep pace
with the country’s growth and economic development;

WHEREAS, RA 11285 or the Energy Efficiency and Conservation (EEC) Act declares
the policy direction of the government in terms of energy efficiency, conservation,
sufficiency, and sustainability in the country;

WHEREAS, Section 17 of the EEC Act directs the DOE, as the lead agency in the
implementation of said Act, to develop the fuel economy performance labeling
requirements and fuel efficiency testing guidelines with the assistance of the
Department of Environment and Natural Resources (DENR) and the Department of
Transportation (DOTr);

WHEREAS, Rule XII of the EEC Act Implementing Rules and Regulations (EEC-IRR),
mandates the Energy Labeling for Transport Vehicles (Section 60) and Examination,
Testing and Verification (Section 61);

WHEREAS, Rule XVIII of the EEC-IRR enumerated the prohibited acts and
enforcement methods, as well as the administrative and criminal liabilities;

WHEREAS, Section 5 of the DOE Department Circular (DC) No. DC2020-06-0015
states that the coverage for fuel economy performance and labeling requirements for
transport shall be made after public consultation and coordination with the DENR and
DOTr, while DC No. DC2020-10-0023 provides the policy framework for the
development of the fuel economy rating, fuel economy performance for transport
vehicles and related EEC policies for transport vehicles and other support
infrastructures in the country;

WHEREAS, Section 11 (k) of the Implementing Rules and Regulations of the Electric
Vehicle Industry Development Act (EVIDA-IRR) mandates the DOE on the
enforcement of electric vehicles (EVs) to comply with the Fuel Economy Performance
for Transport Vehicles under the EEC Act;

WHEREAS, conservation and efficient utilization of energy are among the major
strategies of the Government to realize energy self-sufficiency and reduce
environmental impacts of energy generation and utilization as emphasized in the
Philippine Energy Plan (PEP) and the National Energy Efficiency and Conservation
Program (NEECP);
Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global wed jf asuls City, Philippines 1632
Tel. Nos. (Trunkline) (632) 8479-2
Website: http://www.doe.gov.ph; E-mail: i nae: gov.ph
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WHEREAS, the PEP covers the Energy Efficiency Program for land, air and water
transport for the medium and long-term planning of the DOE, particularly on
compliance with the EEC Act and other related DCs;

WHEREAS, after a series of meetings, the Inter-Agency Working Group (IAWG)
created under Section 4 of DC No. DC2020-10-0023 has supported the
recommendation of the DOE for the institution of the transport vehicles labeling
program in the country;

WHEREAS, the mandatory implementation of the VFELP will lead to, among others,
the empowerment of consumers by enabling them to validate information provided by
vehicle manufacturers, importers, distributors, dealers, and rebuilders which will
facilitate the selection of fuel-efficient transport vehicles, realization of fuel savings,
elimination of fuel-inefficient vehicles in the market, and reduction of greenhouse gas
emissions;

NOW, THEREFORE, in consideration of all the foregoing premises, the DOE hereby
imposes and promulgates the following VFELP Guidelines:

Section 1. Title. This DC shall be known as the “/FELP Guidelines”.

Section 2. Scope and Application. This DC shall apply to all manufacturers,
importers, distributors, dealers, and rebuilders of all transport vehicles.

Section 3. Definition of Terms. For the purposes of this DC, its Annexes, and the
VFELP Implementing Guidelines, the following terms and definitions shall apply:

a. Applicant - refers to any natural or juridical person engaged in the
manufacturing, importing, distributing, rebuilding, dealing, retailing and/or
selling of transport vehicles who registers with the DOE in compliance with the
requirements of this DC and the VFELP Implementing Guidelines;

b. Code of Practice on Fuel Economy Performance (COPE) - refers to the
particular product requirement (PPR) which is an integral part of the VFELP
Implementing Guidelines;

c. DOE Monitoring Team - refers to a core group of personnel from the Energy
Utilization Management Bureau (EUMB), and/or other DOE-authorized
representatives to assist the agency in the conduct of monitoring and
verification activities as specified in the VFELP Implementing Guidelines;

d. Enforcement - refers to an activity or operation including on-site inspections
where DOE detects violations or possible violations for the purpose of checking
the compliance with the provisions of this DC;

e. Fuel Economy Label (FEL) - refers to the prescribed tag/sticker/marker in this
DC that bears the DOE logo and essential fuel economy performance
information compliant with the PPR;

Department Circular on the Philippine Transport Vehicle Fuel Economy Labeling Program (VFELP)
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f. Fuel Economy Performance Rating (FEPR) - refers to the distance travelled
against the fuel and/or energy consumed by a transport vehicle;

g. Minimum Energy Performance for Transport Vehicles (MEPV) - refers to
the minimum fuel economy performance rating for transport vehicles set by the
DOE as specified in the VFELP Implementing Guidelines;

h. Monitoring - refers to an activity where the DOE systematically observes,
checks, and keeps a record of compliance with the requirements of this DC and
the VFELP Implementing Guidelines;

i. National Energy Efficiency and Conservation Database (NEECD) - refers
to a centralized, comprehensive, and unified database on national energy
consumption, the application and use of energy efficient and renewable energy
technologies, and other critical and relevant information to be used for
evaluation, analysis, and dissemination of data and information related to
energy efficiency and conservation;

j. Particular Product Requirements (PPR) - refer to a component of the VFELP
Implementing Guidelines that provides the detailed technical requirements of
transport vehicles, particularly requiring the attachment of appropriate fuel
economy label;

k. Road Transport Vehicle - refers to land vehicle conveying cargo or
passengers, regardless of size or weight classification designed to operate on
a road;

|. Transport Vehicles - refer to land, air, or water vehicles conveying cargo or
passengers, regardless of size or weight classification; and

m. Verification - refers to the process of validating the correctness of the FEPRs
and other information on the fuel economy label, and/or the process of
establishing through tests, the veracity and accuracy of claims of the Applicant
on fuel economy.

Section 4. Implementation Mechanism. The EUMB shall be responsible for the
formulation, promulgation, enforcement, review, and evaluation of the VFELP policy
and for implementing monitoring activities to ensure the industry player’s compliance.
EUMB shall discharge the functions through the Alternative Fuels and Energy
Technology Division (AFETD).

The EUMB may seek the assistance of the Field Offices (FOs) for market monitoring,
and enforcement to ensure industry players’ compliance with the VFELP in
coordination with the local government units and other national government agencies.

The Information Technology Management Services (ITMS) shall provide support in
maintaining the NEECD and the online VFELP services.

The Legal Services - General Legal Services Division (_LS-GLSD) shall be responsible
for the adjudication for violations or prohibited acts under the EEC Act, the EEC-IRR,

Department Circular on the Philippine Transport Vehicle Fuel Economy Labeling Program (VFELP)
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this DC, VFELP Implementing Guidelines, and any related issuances for non-
compliant transport vehicles, in cooperation with EUMB.

Section 5. Covered Transport Vehicles. Under this DC, the VFELP will initially cover
road transport vehicles powered by an internal combustion engine (ICE) and EVs with
reference to Section 5 of the EVIDA-IRR: Provided, That additional transport vehicles,
specifically for water and air transport vehicles, shall be included within the coverage
of the VFELP upon coordination and consultation with relevant government agencies
and stakeholders.

Section 6. Responsibilities of Applicants. Applicants shall have the following
responsibilities:

6.1. Ensure that their vehicles, for which an application of fuel economy label
has been approved, comply with the requirements of the VFELP and its
Guidelines;

6.2 Make available, and if required, submit reportorial documents to EUMB,
as may be specified in the VFELP Implementing Guidelines;

6.3 Pay the application fees in accordance with Annex A of this DC (Table
of Fees) and be responsible for all attendant costs such as verification
testing (drawing / transport of samples and other related fees);

6.4 Print and place the fuel economy label on the vehicles: Provided, That
for vehicles on sale, attachment of fuel economy label is on the visible
side of the transport vehicle; and

6.5 Cooperate fully with the DOE Monitoring Team during the conduct of
enforcement, monitoring, and verification activities.

Section 7. Responsibilities of Manufacturers, Importers, Distributors, Dealers,
and Rebuilders. The following are the responsibilities of manufacturers, importers,
distributors, dealers and rebuilders:

7.1. Ensure that the transport vehicles covered by the VFELP and for sale in
stores have the fuel economy labels attached to them on the location
prescribed in this DC and are visible to the buyers;

7.2 Must exhibit or mention the fuel economy labels in the promotion of their
vehicle products such as but not limited to publications and
advertisements; and

7.3. Cooperate fully with the DOE Monitoring Team during the conduct of
enforcement, monitoring, and verification activities.

Section 8. Technical Working Groups (TWGs). To facilitate the development of
PPRs, TWGs shall be created as interim bodies of technical personnel which shall be
participated by the IAWG created under DOE DC No. DC2020-10-0023. TWGs shall

Department Circular on the Philippine Transport Vehicle Fuel Economy Labeling Program (VFELP)
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be convened as necessary to discuss technical matters that pertain to PPRs and
issues On special cases such as:

8.1 New technology not yet covered in the current VFELP
8.2 Expansion and updates on the VFELP

The membership and composition of the TWG shall be determined according to
specific technical issues such as products, test methods, technical requirements,
coverage, etc.

AFETD shall be the convener of the TWG for the development and formulation of the
PPRs, development of technical requirements, conformity assessment procedures,
and recognition of testing laboratories.

Consistent with Section 5 of this DC, the output of the TWG on the VFELP
Implementing Guidelines and the PPRs shall be for approval of the EUMB: Provided,
That any expansion of covered transport vehicle will be endorsed by EUMB for
approval of the DOE Secretary.

Section 9. Implementing Guidelines. The DOE, through EUMB, shall issue the
VFELP Implementing Guidelines on a per transport vehicle basis, which will include,
among others, administrative, application procedures, general, technical, and PPR as
well as the procedure for the monitoring, verification, and enforcement of the VFELP:
Provided, That VFELP Implementing Guidelines shall only be issued after public
consultation: Provided further, That the effectivity and timelines of any issued VFELP
Implementing Guidelines will be mutually agreed upon by the DOE and the industry
stakeholders.

Section 10. Code of Practice on Energy Labeling of Transport Vehicle. Pursuant
to Section 15 of the EEC Act, the Code of Practice on Energy Labeling of Products
(COPE) provides for the calculation method for the FEPR and shall accompany each
VFELP Implementing Guidelines issued pursuant to Section 9 of this DC.

Section 11. Compliance Requirements. For effective implementation, all applicants
of VFELP-covered transport vehicles shall ensure that the fuel economy labels,
prescribed by the DOE, are displayed accordingly, and shall provide information that
shall assist consumers to make informed decisions on such products.

All applicants shall also submit annually to DOE, reckoning on the date of approval of
the fuel economy labels, information on the inventory of sales and technical files of
compliant models for estimating the fuel savings related to the implementation of these
requirements. The DOE may issue template forms through the VFELP Implementing
Guidelines to facilitate compliance.

Section 12. Enforcement, Monitoring, and Verification. The enforcement,
monitoring, and verification of compliance by applicants with the VFELP requirements
in the various regions of the country shall be conducted at least once a year.

Department Circular on the Philippine Transport Vehicle Fuel Economy Labeling Program (VFELP)
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Section 13. Prohibited Acts. Pursuant to the EEC Act and the EEC-IRR, any person
or entity found in violation of any of the following shall be subject to the appropriate
criminal, civil and/or administrative sanctions as follows:

13.1 Failure to comply with fuel economy label;

13.2 Removing, defacing or altering any fuel economy label before the
product is sold to the first retail purchaser or leased to the first lessee;

13.3 Failing to provide accurate information or the provision of false or
misleading information as required to be submitted under the EEC Act,
the EEC-IRR, this DC, and other issuances of the DOE;

13.4 Selling, leasing, or importing transport vehicles that do not comply with
FEPR and/or MEPV;

13.5 Willfully refusing to submit to an on-site inspection;
13.6 Failing or willfully refusing to submit any of the reports required herein;

13.7 Failing to comply with issued orders of the DOE in the discharge of its
enforcement powers;

13.8 Failure to register VFELP-covered transport vehicles; and

13.9 Violating any provisions of the EEC Act, EEC-IRR, codes, and
guidelines.

Section 14. Administrative Procedures. The DOE may initiate, motu proprio or upon
filing of complaint, an administrative proceeding against any person or entity who
commits any of the prohibited acts under Section 30 of the EEC Act and Section 80 of
the EEC-IRR, or other related issuances.

The administrative proceedings will be conducted to determine the culpability of
offenders and the applicable penalties in accordance with the provisions of the EEC
Act, its IRR, and this DC.

Section 15. Criminal Liability. The responsible officers and employees of any
establishments or organization who willfully commit any of the prohibited acts under
Section 30 of the EEC Act shall upon conviction, suffer the penalty of imprisonment of
one (1) year to five (5) years or a fine ranging from a minimum of One Hundred
Thousand Pesos’ (PhP100,000.00) to One Hundred Million Pesos
(PhP100,000,000.00) or twice the amount of costs avoided for non-compliance,
whichever is higher, or both, upon the discretion of the court.

Any person who willfully aids or abets the commission of the prohibited acts, under
Section 30 of the EEC Act or who causes the commission of such acts by another,
shall be liable in the same manner as the principal.

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In cases of association, partnership or corporation, the penalty shall be imposed on
the partner, president, chief operating officer, chief executive officer, director, or officer
responsible for the violation.

Section 16. Penalties. Upon the determination that any person or entity has
committed any of the prohibited acts under Section 13 hereof, the DOE may issue an
order against the said person or entity through the imposition of administrative fines
and penalties in accordance with Annex B of this DC (Schedule of Fines and
Penalties).

Section 17. Publication. The DOE shall publish a biannual updated list of compliant
transport vehicles on the DOE website and newspapers of general circulation
indicating the vehicle brand name and model.

An annual report on the status of the VFELP implementation shall be published which
shall include, among others, compliance rate by applicants with fuel economy labeling
requirements as well as improvement in the fuel efficiency of transport vehicles sold
to consumers in the Philippines.

Section 18. Information, Education, and Communication (IEC) Activities.
Pursuant to Section 85 of the EEC-IRR, the DOE shall develop and undertake a
national awareness and advocacy program covering energy efficiency and
conservation and pursue partnerships with relevant stakeholders for the
implementation of this DC.

Section 19. Amendment Clause. The DOE may revise, supplement, and issue
related guidelines, circulars, and other subsidiary issuance as it deems necessary for
the effective implementation of the various provisions of this DC.

Section 20. Repealing Clause. The provisions of other circulars, orders, issuances,
rules, and regulations, which are inconsistent with the provisions of this DC are hereby
repealed, amended, modified, or superseded accordingly.

Section 21. Separability Clause. If for any reason, any section or provision of this
DC is declared unconstitutional or invalid, such parts not affected shall remain in full
force and effect.

Section 22. Effectivity. This DC shall take effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation. Copies of this DC
shall be filed with the University of the Philippines Law Center - Office of the National
Administrative Register.

Issued this__ of May 2023 at the DOE, Energy Center, Rizal Drive cor. 34'" Street,
Bonifacio Global City, Taguig City.

RAPHAEL P.M.LOTILLA % ee
Secretary On Bz

Department Circular on the Philippine Transport Vehicle Fuel Economy Labeling Program (VFELP)
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Annex A
Table of Fees

Name of Activity fin PAP)

Application for Company Registration 3,000

Application for Transport Vehicle Registration ner transport vehicle okie
Request for Fuel Economy Label Issuance per rie

Annex A. Table of Fees of VFELP Page 1 of 1
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Annex B
Schedule of Fines and Penalties

The following fines and penalties as stated in Section 16 of the VFELP Guidelines
shall apply:

Violation Fines and Penalties (in PhP
10,000-200,000 200,000-500,000 500,000-1,000,000

Selling of non-
registered transport 15t Offense
vehicle

Removal, defacing,
altering, absence of
correct fuel
economy label
before the product is 15t Offense 2"? Offense 3 Offense
sold to the first
retailer purchases or
leased to the first
lessee
Failing to provide
accurate information
or the provision of
false or misleading 15t Offense
fuel economy
information as
uired
Selling, leasing or
importing transport
vehicle that do not 18' Offense
comply with FEPR
and/or MEPV
Willfully refusing to
submit to an on-site 15t Offense 2™4 Offense
inspection
Failing or willfully
refusing to submit 15t Offense 2"? Offense 3 Offense
required reports
Failing to comply
with issued orders of
the DOE in the 15t Offense
discharge of its
enforcement powers
| ram fe anne
Annex B. Schedule of Fines and Penalties of VFELP Page 1 of 2
fr

Failure to register
VFELP-covered
transport vehicles

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Violating any
provisions of the
EEC Act, EEC-IRR, 18 Offense

24 Offense 3% Offense
codes and
guidelines

*The imposition of the administrative fines and penalties stated above shall be on a
“per vehicle model” basis.

Annex B. Schedule of Fines and Penalties of VFELP Page 2 of 2

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