The House of Representatives have approved a preventive measure that was proposed to establish a framework for emergency response in times of crisis driven by a lack of fuel and energy supply on second reading.

Through House Bill (HB) No. 9305, otherwise known as the KALINGA Act, the President would be given emergency powers to implement various interventions meant to circumvent market shocks that could occur due to the shortage.

Based on the provisions of the bill, the powers would be activated after the chief executive declares a state of national emergency upon the recommendation of the KALINGA National Response Council when the price of Dubai crude oil reaches $80 per barrel for a period of 30 days.

When activated, the President would be able to allocate funding for affected sectors such as fuel, energy, transport, logistics, food security, social protection, and other programs that would directly assist vulnerable individuals.

To prevent abuse, the bill also imposed guidelines to ensure that the re-allocation of funds would be subjected to auditing by the Commission on Audit (CoA) for full transparency into expenditures.

One of the measures that would be enacted by the KALINGA council grants electricity bill assistance with a P500 credit that would automatically be deducted to bills with a monthly consumption that exceeds 100 kilowatt-hours but does not exceed 150 kilowatt-hours.

Another ability granted to the President is the authority to temporarily suspend VAT and excise tax on petroleum products for a limited time of 60 days based on a complete assessment of the fuel market.

It also offers provisions that protect the public transport, fishery, and agriculture sector which were among the most affected sectors in the recent crisis that arose from the Middle Eastern conflict.

Assistance would be provided through the means of fuel subsidies, vouchers, fuel cards, incentives, fare subsidy, and other mechanisms.

The bill was proposed to the House plenary by House Committee on Ways and Means Chair Miro Quimbo who also headed the Ad Hoc Committee on Legislative Energy Action and Development.