DOE Department Circular No. DC2023-05-0016: Prescribing the Fuel Economy Performance Rating Guidelines on Road Transport Vehicles

The Department of Energy (“DOE”) issued Department Circular No. DC2023-05-0016 the (“Circular”), which prescribes the Fuel Economy Performance Rating (“FEPR”) guidelines on road transport vehicles under the Philippine Transport Vehicles Fuel Economy Labeling Program (“VFELP”). The Circular applies to all manufacturers, importers, distributors, dealers, and rebuilders of all transport vehicles. Under the Circular, however, the FEPR will initially cover road transport vehicles, or the land vehicles conveying cargo or passengers, regardless of size or weight classification designed to operate on a road, which are classified as:

1. Class L – road motor vehicles with less than 4 wheels and including 4 wheeled vehicles with restrictions on maximum speed, maximum mass, and maximum rated power;
2. Class M1 – vehicles used for the carriage of passengers and comprising not more than 8 seats in addition to the driver’s seat and having a gross vehicle weight not exceeding 5,000 kg; and
3. Class N1 – vehicles used for the carriage of goods and having a maximum gross vehicle weight not exceeding 3,500 kg. 

The following are some of the responsibilities of an applicant as provided in the Circular:

1. Ensure that their vehicles, for which an application of fuel economy label has been approved, comply with the requirements of the Circular, VFELP and its Guidelines, and applicable Minimum Energy Performance for Transport Vehicles (“MEPV”);
2. 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; 
3. Apply for fuel economy performance assessment;
4. Submit fuel economy performance and emission test reports to support the claimed fuel economy rating; and
5. 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, among others.

The Circular likewise lists the following prohibited acts pursuant to the Energy Efficiency and Conservation (“EEC”) Act:

1. Selling, leasing, or importing transport vehicles that do not comply with FEPR and/or the prescribed MEPV/not registered with the DOE;
2. Failing to provide accurate information or the provision of false or misleading information as required to be submitted under the EEC Act, its implementing rules and regulations (“EEC-IRR”), the Circular, and other issuances of the DOE;
3. Willfully refusing to submit to an on-site inspection;
4. Failing or willfully refusing to submit any of the reports required herein;
5. Failing to comply with issued orders of the DOE in the discharge of its enforcement powers; and
6. Violating any provisions of the EEC Act, EEC-IRR, codes, and guidelines. 

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 1 year to 5 years or a fine ranging from a minimum of PHP100,000.00 to PHP 100,000,000.00 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 aid 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.

Upon the determination that any person or entity has committed any of the prohibited acts under Section 10 of the Circular, the DOE may issue an order against the said person or entity through the imposition of administrative fines and penalties up to a maximum of PHP1,000,000.00.