DEPARTMENT CIRCULAR NO. DC2023-05-0016 PRESCRIBING THE FUEL ECONOMY PERFORMANCE RATING (FEPR) GUIDELINES ON ROAD TRANSPORT VEHICLES UNDER 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); WHEREAS, the PEP also 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 the foregoing premises, the DOE hereby imposes and promulgates the following guidelines for the FEPR Program: Section 1. Title. This DC shall be known as the "FEPR Guidelines for Road Transport Vehicles." 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; 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 (PPRs) — 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; l. 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. Road Transport Vehicle Classifications. For the purpose of this Circular, the classification of transport vehicles shall be in accordance with Annex A of this DC (Road Motor Vehicle Classification) which adopts the road vehicle classification of DOTr defined under the Philippine National Standards (PNS) 1891 — Road Vehicles — Classification and Definition. Section 5. Covered Transport Vehicles. Under this DC, the FEPR will initially cover the following road transport vehicles — Class L, Class M1, and Class N1 vehicles powered by an internal combustion engine (ICE) in accordance with Annex A of this DC (Road Motor Vehicle Classification) and EVs with reference to Section 5 of EVIDA- IRR: Provided, That additional road transport vehicles shall be included within the coverage of this DC upon the recommendation of EUMB after public consultation and coordination with DENR and DOTr. 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 under this DC, VFELP and its Guidelines, and applicable MEPV; 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 C 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; 6.5 Cooperate fully with the DOE Monitoring Team during the conduct of enforcement, monitoring, and verification activities; 6.6 Apply for fuel economy performance assessment; 6.7 Submit fuel economy performance and emission test reports to support the claimed fuel economy rating; and 6.8 Include the vehicle fuel economy label in all means of vehicle publications, such as but not limited to advertisement, billboard, printed flyers, website, social media, etc. Section 7. Periodic Adjustment of FEPR and MEPV. The FEPR and MEPV shall be reviewed by the members of the Technical Working Groups (TWGs) of VFELP, pursuant to Section 10 of the VFELP Guidelines, every three (3) years. The output of the TWG on the FEPR and MEPV shall be for the approval of the EUMB: Provided, That any expansion of covered road transport vehicles will be endorsed by EUMB for approval of the DOE Secretary. The adjustment of FEPR and MEPV shall always be directed towards an increase in fuel efficiency or improvement in fuel economy performance. The DOE, in consultation with DOTr and other relevant stakeholders, may issue further guidelines related to the vehicle type approval pertaining to the measurement of fuel consumption and/or to the measurement of electric energy consumption and distance range. Section 8. Compliance Requirements. For effective implementation, all applicants of FEPR-covered road transport vehicles shall ensure that road transport vehicles comply with the prescribed FEPR in Annex B of this DC (Table of FEPR for Road Transport Vehicles). Section 9. Enforcement, Monitoring, and Verification. The enforcement, monitoring, and verification of compliance by applicants with the FEPR requirements shall be conducted at least once a year, consistent with the VFELP Guidelines and VFELP Implementing Guidelines. Section 10. 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 sanction as follows: 10.1 Selling, leasing, or importing transport vehicles that do not comply with FEPR and/or the prescribed MEPV/not registered with the DOE; 10.2 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; 10.3. Willfully refusing to submit to an on-site inspection; 10.4 Failing or willfully refusing to submit any of the reports required herein; 10.5 Failing to comply with issued orders of the DOE in the discharge of its enforcement powers; and 10.6 Violating any provisions of the EEC Act, EEC-IRR, codes, and guidelines. Section 11. 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 12. 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. 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 13. Penalties. Upon the determination that any person or entity has committed any of the prohibited acts under Section 10 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 D of this DC (Schedule of Fines and Penalties). Section 14. 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 FEPR 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 15. 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 16. 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 17. 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 18. 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 19. 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 May 23, 2023 at the DOE, Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City. RAPHAEL P.M. LOTILLA Secretary --- ## Annex A. Road Motor Vehicle Classification [Adopts PNS 1891 — Road Vehicles — Classification and Definition, per DOTr Department Order 2010-32 and DOTr Guidelines Governing the Issuance of Student-Driver's Permit, Conductor's License and Driver's License.] [Note: Table formatting partially illegible in OCR; reconstructed from legible content.] ### Class L — Road motor vehicles with less than four wheels | Sub-class | Description | Other description | |---|---|---| | L1 | Two-wheeled vehicle with maximum design speed not exceeding 50 km/h | Mopeds, light electric vehicle (LEV) | | L2 | Three-wheeled vehicle with maximum design speed not exceeding 50 km/h | Mopeds, LEV | | L3 | Two-wheeled vehicle with maximum design speed exceeding 50 km/h, without sidecar | Motorcycle, LEV | | L4 | Vehicle with three wheels asymmetrically arranged in relation to the longitudinal median plane, with maximum design speed exceeding 50 km/h (motorcycle with sidecar) | Motorcycle with sidecar, LEV | | L5 | Vehicle with three wheels symmetrically arranged in relation to the longitudinal median plane, with maximum design speed exceeding 50 km/h | Three-wheeled vehicle | | L6 | Vehicle with four wheels whose unladen mass is not more than 350 kg (excluding battery mass for EVs), maximum design speed not more than 45 km/h | — | | L7 | Vehicle with four wheels (other than L6), unladen mass not more than 400 kg (550 kg for goods vehicles, excluding battery mass for EVs), maximum design speed not more than 45 km/h | — | ### Class M — Road motor vehicles with at least four wheels, for carriage of passengers | Sub-class | Description | Other description | |---|---|---| | M1 | Vehicles for carriage of passengers, comprising not more than eight (8) seats in addition to the driver's seat, and having a gross vehicle weight not exceeding 5,000 kg | Passenger car, utility vehicle (UV), sports utility vehicle (SUV), low speed vehicle (LSV), high speed vehicle (HSV), taxi, FX cab, tourist car, tourist metered taxi, school [transport service] | | M2 | Vehicles for carriage of passengers, comprising more than eight (8) seats in addition to the driver's seat, and having a gross vehicle weight not exceeding 5,000 kg | LSV, HSV, UV, FX cab, public utility jeepney (PUJ), minibus, tourist transport service, GT Express service, shuttle service, school transport service | | M3 | Vehicles for carriage of passengers, comprising more than eight (8) seats in addition to the driver's seat, and having a maximum gross vehicle weight exceeding 5,000 kg | Bus, LSV, HSV, UV, PUJ, minibus, public utility bus (PUB), shuttle service, tourist bus, school transport service | ### Class N — Road motor vehicles with at least four wheels, for carriage of goods | Sub-class | Description | Other description | |---|---|---| | N1 | Vehicles for carriage of goods, maximum gross vehicle weight not exceeding 3,500 kg | — | | N2 | Vehicles for carriage of goods, maximum gross vehicle weight exceeding 3,500 kg but not exceeding 12,000 kg | UV, trucks, truck for hire | | N3 | Vehicles for carriage of goods, maximum gross vehicle weight exceeding 12,000 kg | Trucks, truck for hire | ### Class O — Trailers and semi-trailers | Sub-class | Description | Other description | |---|---|---| | O1 | Trailers and semi-trailers with maximum gross vehicle weight not exceeding 750 kg | Trailers | | O2 | Trailers and semi-trailers with maximum gross vehicle weight exceeding 750 kg but not exceeding 3,500 kg | Trailers | | O3 | Trailers with maximum gross vehicle weight exceeding 3,500 kg but not exceeding 10,000 kg | Trailers | | O4 | Trailers with maximum gross vehicle weight exceeding 10,000 kg | Trailers | --- ## Annex B. Table of Fuel Economy Performance Rating (FEPR) for Road Transport Vehicles 1. Fuel Economy Label for the Fuel Economy Performance of Road Transport Vehicles 1.1 Vehicles shall provide rated fuel economy performance of the passenger cars and commercial vehicles through fuel economy label and must be in kilometer per liter (km/L) or kilometer per kilowatt-hour (km/kWh) rounded to the nearest tenths. 1.2 CO2 emission in ton of CO2 per kilometer (ton of CO2/km). 1.3 The fuel economy performance rating shall be represented based on the fuel consumption compliance to applicable PNS and shall be presented as follows: [Note: The star-rating table and battery electric vehicle rating table were not captured in legible form by OCR. DOE guidelines on classification and star-rating requirements referenced in Section 1.4 below.] 1.4 The DOE shall issue guidelines pertaining to the implementation and compliance to fuel consumption, determination of minimum fuel economy performance rating of transport vehicles, presentation of fuel economy label, and classification and requirements for the star rating. --- ## Annex C. Table of Fees [Note: OCR table partially illegible — amounts below are as captured; verify against original.] | Name of Activity | Fee (in PhP) | |---|---| | Application for Company Registration | 2,400 | | Application for Transport Vehicle Registration | 1,400 per transport vehicle model | | Request for Fuel Economy Label Issuance | [amount per issuance — not captured in OCR] | --- ## Annex D. Schedule of Fines and Penalties The following fines and penalties as stated in Section 13 of the FEPR Guidelines for Road Transport Vehicles shall apply. [Note: Table structure partially illegible in OCR; violation categories and offense levels reconstructed from legible content.] | Violation | PhP 10,000–200,000 | PhP 200,000–500,000 | PhP 500,000–1,000,000 | |---|---|---|---| | Selling, leasing or importing transport vehicles that do not comply with FEPR and/or MEPV, or not registered with DOE | 1st Offense | 2nd Offense | — | | Failing to provide accurate information or provision of false or misleading information as required under EEC Act, EEC-IRR, this DC, and other DOE issuances | 1st Offense | 2nd Offense | 3rd Offense | | Willfully refusing to submit to an on-site inspection | [offense levels not captured] | | | | Non-submission of reportorial requirements | [offense levels not captured] | | | | Failing to comply with issued orders of DOE in discharge of its enforcement powers | [offense levels not captured] | | | | Violating any provisions of the EEC Act, EEC-IRR, codes and guidelines | [offense levels not captured] | | |