DOE Prescribes Guidelines on the Philippine Transport Vehicles Fuel Economy Labeling Program

On 23 May 2023, the Department of Energy (“DOE”) issued Department Circular No. DC2023-05-0017 (the “Guidelines”), prescribing the guidelines on the Philippine transport vehicles fuel economy labeling program (“VFELP”) for compliance of vehicles manufacturers, importers, distributors, dealers, and rebuilders. 

The Guidelines define fuel economy label as the prescribed/tag/sticker/marker that bears the DOE logo and essential fuel economy performance information compliant with the Particular Product Requirements (“PPR”). On the other hand, PPR refers to a component of the VFELP Implementing Guidelines that provides the detailed technical requirement of transport vehicles, particularly requiring the attachment of appropriate fuel economy label.

Under the Guidelines, the VFELP will initially cover road transport vehicles powered by an internal combustion engine and electric vehicles with reference to Section 5 of the Implementing Rules and Regulations (“IRR”) of the Electric Vehicle Industry Development Act. Additional transport vehicles, specifically for water and air transport, shall be included within the coverage of the VFELP upon coordination and consultation with relevant government agencies and stakeholders. 

The implementation mechanism of VFELP shall include the Energy Utilization Management Bureau (“EUMB”) and the Alternative Fuels and Energy Technology Division (“AFETD”). 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 players’ compliance. The EUMB shall discharge the functions through the AFETD. 

With the issuance of the Guidelines, the DOE enumerates the responsibilities of vehicles manufacturers, importers, distributors, dealers, and rebuilders:

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 the Guidelines and are visible to the buyers;
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
3. Cooperate fully with the DOE Monitoring Team during the conduct of enforcement, monitoring, and verification activities. 

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. Furthermore, all applicants shall submit to DOE annually, 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 saving related to the implementation of these requirements. The DOE may issue template forms through the VFELP Implementing Guidelines to facilitate compliance. 

The Guidelines also provides for prohibited acts and their corresponding criminal, civil, and/or administrative sanctions. Among the prohibited acts are:

1. Failure to comply with fuel economy label;
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; and 
3. Failing to provide accurate information or the provision of false or misleading information as required to be submitted under the Guidelines, Energy Efficiency & Conservation Act and its IRR, and other issuances of the DOE.