The Philippines is now producing adequate CNG from its deposits whereby the transport sector could be among its major beneficiaries.  CNG buses on the other hand have proven its role in significantly reducing the emission of pollutants into the atmosphere.  Therefore, it is a vehicle for the transport sector to meet the required emission standard.  Through the CNG buses, the transport sector will have a cost effective alternative to the traditional bus operation.  Further, optimize utilization of the domestic resources by the transport services will relieve the transport sector from the problem of continued increases in fossil fuel pump price, thereby resulting to unquantifiable economic benefits.

In order, therefore, for the transport sector to maximize the benefit from the use of the CNG, all Offices and sectors of this Office are hereby directed to implement measures that would promote the immediate use of the CNG fuel.

In view thereof, the LTFRB is hereby directed to institute the following measures.

1. For CNG bus routes

1.1.Franchises issued following the routes enumerated hereunder shall continuously be operated by CNG buses only;

1.2 No dropping and substitution shall be allowed unless the subsequent petition involve substitution by CNG bus units:

ROUTE	RMC
1. Padilla - Quiapo via Aurora Blvd., Sumulong	20 units
2. Padilla - Quiapo via Ortigas Ave., Felix Ave., Marcos Hi-way	20 units
3. Cubao - Batangas City via SLEX, EDSA	60 units
4. San Fernando, Pampanga - Cubao via NLEX, EDSA	20 units
5. Calamba - Lawton via SLEX, EDSA	40 units
6. Lawton - Batangas City via SLEX, EDSA	40 units

2. For routes with additional requirements under the Rationalization Program

2.1 Applications involving CNG bus units shall be considered for franchise issuance; and

2.2 Only brand new bus units shall be allowed

The Land Transportation Office is hereby directed to require the following documents from all assembled buses fashioned from second hand engines and spare parts.

1.  Certification of Adherence to Vehicle Design and Safety Standard from the Bureau of Import Services (BIS)/Department of Trade and Industry (DTI) to protect road users from vehicle crashes resulting from operations of substandard vehicles; and

2.  Certificate of Conformity (COC) from DENR as they are registered as brand new vehicles and in deference to the provisions of the Clean Air Act.

For immediate implementation.

Adopted: 08 July 2004


(SGD.) LEANDRO R. MENDOZA
Secretary