oC i!>
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
S.B. No.
SENATE
384
•22 JUL 12 All 59
RCCE'iV^DB'..
Introduced by Senator WIN GATCHALIAN
AN ACT PROVIDING FOR A NATIONAL ENERGY POLICY AND FRAMEWORK 
FOR THE ESTABLISHMENT OF AN ENERGY SUBSIDY PROGRAM
EXPLANATORY NOTE
The transportation sector accounts for 30.4% of the country's Total Final Energy 
Consumption, a close second to household sector which accounts for 31%.1 By fuel 
demand, the bulk of the transportation sector's energy consumption is divided 
between diesel at 49.9% share and gasoline with 42.1% share in the consumption.2 
Given that the sector is a significant consumer of energy, any price or supply volatility 
in the country's energy supply greatly affects the industry.
This is evident during the first few months of 2022 when Russia invaded Ukraine 
leading to a spike in international oil prices with Brent crude hitting USD 100 per barrel, 
the first time since 2014.3 The sudden increase in oil prices in the international market 
in turn was reflected in domestic oil prices where the country witnessed ten (10) 
consecutive weeks of price increases in March 2022.4 The public transport sector 
consisting of the driving and the riding public bore the brunt of these increases.
1 Page 28. Philippine Energy Plan 2020-2040.
2 Page 31. Philippine Energy Plan 2020-2040.
3 
Russia's invasion of Ukraine has sent energy prices soaring - here's how high oil could rise. Forbes. 25 February 2022. Available at;
https://www.forbes.com/sites/sergeiklebnikov/2022/02/25/russias-invasion-of-ukraine-has-sent-energy-prices-soaring-heres-how-high-oil-could-rise/7sh-54716ae73f25.
Accessed on 2G^^n(^rj2°22o 
much as p3) diese| p5 next week amid ukraine conflict. ABS-CBN News. 5 March 2022. Available at: https://news.abscbn.eom/business/03/05/22/gas-pricei
to-soar-by-as-much-as-p3-diesel-p5-next-week. Accessed on 2 June 2022.


The government implemented a fuel subsidy pr ogram in order to address the sudden 
increase in prices.1 However, the roll-out of the program was hampered by various 
difficulties such as confusion as to the program's effectivity,2 lack of a centralized 
database for qualified drivers,3 delay in distribution of vouchers,4 and even the election 
spending ban.5
This proposed legislation thus seeks to institutionalize the fuel subsidy program, which 
is now renamed as the Energy Subsidy Program, in the event of future spikes in oil 
prices and address the challenges faced In implementing it. It establishes a clear 
standard as to when the program should commence, who the qualified beneficiaries 
are, and how the amount of the subsidy will be determined. The proposed legislation 
likewise mandates the government to regularly review and publish an annual report 
on the implementation of the program. Finally, to ensure an efficient and effective 
implementation of the program, this proposed legislation likewise requires the use of 
digital payment systems in the distribution of the subsidy, imposes penalties upon 
erring government officials for failure to ensure the timely release of the subsidy to all 
aualified beneficiaries, as well as perform their respective mandate under this 
measure.
For these reasons, the immediate passage of this measure is sougM.
lATCHALIAN
1 Duterte Oks 
implementation 
of 
Pantawid Pasada, fuel 
discount programs. Philippine Daily 
Inauirer. 2
2022. 
AvailaWe at: httDs://nevvsinFo.inauirer.net/1562236/duterte-oks-jmDiementation-or-Dancawid-'Dasada-fu€i-aiscounc-Droarams. 
-z'r. ------- -
'3-month rule'in place on reiase of fuel subady: Palace. Philippine News Agency. 18 February 2022. Available at; https://www.pna.gov.ph/arbcles/1168098. Accesed on 2 
June 2022.
- Fuel subsidy rollout hindered by absence of driver database
. Businessworld. 10 April 2022. Available at: https://www.bwor1donrine.com/economy/2022/04/10/44M87/fuel-subady-rotIout-hindered-by-absence-of-driver-database/. Accessed
on 2 June 2022.
■’ Release of fuel subsidy cards cancelled for the week; LTFRB
. ABS-CBN News. 2 August 2018. Available at https://news.abs-cbn.com/business/08/02/18/ralease-of-ftiel-subsidy-cards-cancdled-for-the-week-ltfrb. Accessed on 2 June 
2022.
5 FUEL SUBSIDY FOR DRIVERS HALTED; 'Pantawid Pasada' covered by pdt spending ban
. Panay News. 6 April 2022. Available at https://www.panaynews.net/fuel-subsidy-for-drivers-halted-pantawid-pasada-covered-by-poll-spending-ban/. Accessed on 2 June 
2022.
Marcl


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S.B. No.
384
o( i!}!'
'22 JUL 12 All 59
RECEiVf.D3’.!:
Introduced by SEN. WIN GATCHALIAN
AN ACT
PROVIDING FOR A NATIONAL ENERGY POLICY AND FRAMEWORK FOR 
THE ESTABLISHMENT OF AN ENERGY SUBSIDY PROGRAM
Be it enacted by the Senate and the House of Representatives of the Phiiippines 
in Congress assembied:
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CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. - This Act shall be referred to as the "Pantawid Pasada 
Act."
SEC. 2. Declaration of Policy. - The State recognizes the fundamental importance 
of energy as a basic input in economic activities and its key role in driving the country's 
growth and development. Towards this end, it is hereby declared a policy of the State 
to provide an effective, targeted, and time-bound mechanism that will address and 
cushion the adverse effects of sudden and drastic increases in international prices of 
oil on the domestic public transport sector, and ultimately the commuting public.
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SEC. 3. Definition of Terms. - For purposes of this Act, the following terms shall 
be defined as stated below:
a) Energy Subsidy Program (ESP) refers to the national government program that 
provides subsidy to qualified beneficiaries to mitigate the adverse effects of 
sudden and drastic increases in international prices of oil on the domestic prices 
of petroleum products pursuant to the process indicated in this Act;
b) Franchise operator refers to a holder or grantee of a valid and subsisting 
Certificate of Public Convenience issued by the Land Transportation Franchising 
and Regulatory Board, and the relevant local government unit, whichever is 
applicable;
c) Subsidy refers to the cash amount provided to qualified beneficiaries under the 
ESP: Provided, That the method of releasing the subsidy shall be determined 
by the Technical Working Group pursuant to Section 5 of this Act;
d) Last-mile delivery service provider refers to an entity which is engaged in the 
delivery of goods from a logistics hub to an end-user and is duly registered with 
the Department of Trade and Industry; and
e) Qualified beneficiary refers to franchise operators and last-mile delivery service 
providers who are entitled to receive subsidy under the ESP as determined 
under Section 6 of this Act.
SEC. 4. Establishment of the Energy Subsidy Program. - There is hereby 
established an Energy Subsidy Program (ESP) which shall provide subsidy to identified 
qualified beneficiaries over a determined period.
The ESP shall be implemented by the Department of Energy (DOE), Department of 
Transportation (DOTr), Department of Finance (DOF), Department of Budget and 
Management (DBM), Department of Trade and Industry (DTI), Land Transportation 
Franchising and Regulatory Board (LTFRB), and local government units (LGUs): 
Provided, That subsidy from the ESP shall be granted to qualified beneficiaries when 
the average price of Dubai crude oil, based on the Mean of Platts Singapore (MOPS), 
for three (3) consecutive months is equal to or greater than eighty dollars (USD 80) 
per barrel.


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SEC 5. ESP Technical Working Group. - A Technical Working Group (TWG) shall
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be established to coordinate the implementation of the ESP and identify as well as
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resolve issues relevant to its implementation. The Secretary of the DOE shall serve as
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the Chairperson of the TWG and the Secretary of the DOTr shall serve as the 
ViceChairperson of the TWG with the following as members:
(a) 
DOF Secretary,
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DBM Secretary,
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DTI Secretary, and
(d) (d) LTFRB Chairperson.
The heads of agencies may nominate their permanent representatives to the TWG.
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The TWG shall also be tasked to perform the following functions:
(a) 
Provide an avenue for the smooth coordination of all agencies involved in the 
implementation of the ESP;
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Determine the amount of subsidy and the length of time that the subsidy shall 
be provided to qualified beneficiaries;
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Ensure the timely release of the subsidy to all qualified beneficiaries;
(d) 
Review and adjust regularly the threshold provided under Section 4 of this 
Act; and
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Prepare and make available to the public an annual report on the ESP.
SEC. 6. Role of Government Agencies. - The DOE, together with the DOTr, shall 
serve as the lead agencies In the implementation of this Act. The DOE and the DOTr, 
along with the following government agencies, shall perform the following functions: 
(a) Department of Energy:
1. Convene the TWG upon the effectivity of this Act,
2. Serve as Secretariat for the TWG,
3. Certify to the TWG that the threshold under Section 4 of this Act has been 
met.


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4. Provide relevant information to the TWG on the oil industry such as oil
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price movements in the international and domestic markets, and domestic
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retail fuel outlets, and
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5. Coordinate with relevant stakeholders in the downstream oil industry
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relative to the implementation of the ESP;
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(b) Department of Transportation:
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1. Determine a speedy and simplified procedure for the distribution of the
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subsidy, upon consultation with the LTFRB, and DTI, within thirty (30)
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days from the effectivity of this Act's implementing rules and regulations:
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Provided, That the procedure for the distribution of the subsidy shall
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employ digital payment systems in order to facilitate an expeditious
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distribution,
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2. Regularly review the procedure for the distribution of the subsidy, and
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revise the procedure, if necessary, to improve its speed and simplicity,
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3. Determine the amount of subsidy to be granted to each qualified
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beneficiary within five (5) days from the certification of the DOE that the
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threshold in Section 4 of this Act has been met: Provided, That in
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determining the amount of subsidy to be granted to each qualified
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beneficiary, the DOTr shall ensure that amount shall be sufficient to
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alleviate the effects of drastic increase in international oil prices taking into
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consideration the available funds for the ETP for a specific year, and
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4. Enter into Memoranda of Agreement and similar arrangements with
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various government agencies and institutions tasked with the
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identification of and distribution of the subsidy to qualified beneficiaries;
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(c) Land Transportation Franchising and Regulatory Board:
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1. Determine annually the list of all qualified beneficiaries based on the
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verified lists of franchise operators registered with the LTFRB, last-mile
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delivery service providers registered with the DTI, and franchise operators
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registered with LGUs on or before the 15th of March of every year,
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2. Distribute to all qualified beneficiaries the subsidy following the speedy
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and simplified procedure determined by the DOTr within thirty (30) days
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from the issuance of DOE's certification under Section 4 of this Act,


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3. Coordinate with the DTI and the LGUs, if applicable, for any concerns and
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inquiries relating to the distribution of the subsidy and the list of qualified
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beneficiaries registered with the DTI and the LGUs, and
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4. Provide relevant data and information to the TWG;
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(d) Department of Trade and Industry:
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1. Determine and verify annually the list of last-mile delivery service
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providers registered with the DTI and submit it to the LTFRB on or before
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the 30th of January of every 
year;
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2. Coordinate with the LTFRB and the qualified beneficiaries registered with
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the DTI for any concerns and inquiries relating to the distribution of the
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subsidy, and
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3. Provide relevant data and information to the TWG;
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(e) Local Government Units:
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1. Determine and submit annually the verified list of franchise operators
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registered in their respective localities to the LTFRB on or before the 30th
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of January of every year,
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2. Coordinate with the LTFRB and the qualified beneficiaries registered with
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the LGU for any concerns and inquiries relating to the distribution of the
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subsidy, and
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3. Provide relevant data and information to the LTFRB.
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SEC. 7. Non-Diminution of Benefits. - Nothing in this Act shall be construed to
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reduce existing benefits to qualified beneficiaries granted under existing laws, and
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rules and regulations, or any contract, or agreement.
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SEC. 8. Prohibited Acts. - Without prejudice to civil and criminal liability, the
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following acts shall be prohibited:
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(a) For the heads of agencies of the members of the TWG, or their permanent
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representatives:
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1. Failure to annually prepare the list of qualified beneficiaries pursuant to
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the time frame provided under Section 6 of this Act, if applicable.


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2. Failure to ensure the timely release of the subsidy to all qualified 
beneficiaries pursuant to the time frame provided under Section 6 of this 
Act, if applicable,
3. Failure to review and adjust regularly the threshold provided under Section 
4 of this Act, if applicable,
4. Failure to prepare and make available to the public an annual report on 
the ESP.
(b) For any government official: failure to perform their respective functions 
under Section 6 of this Act.
SEC. 9. Penalties. - Without prejudice to civil and criminal liability, a fine not 
exceeding the equivalent of six (6) months of salary or suspension not exceeding one 
(1) year, or removal from office, depending on the gravity of the offense, shall be 
imposed as an administrative penalty on the relevant government official for the 
commission of the prohibited acts above.
SEC. 10. Public Access to Information. - The TWG, and other relevant 
government agencies shall allow public access, through a dedicated website, to all 
data and information necessary in the implementation of this Act: Provided, That such 
access is compliant with Section 11 of this Act.
SEC. 11. Confidentiality. - The TWG and other relevant government agencies shall 
not disclose any proprietary and confidential information to the public unless prior 
consent of the source or owner of such information has been obtained by the 
requesting party.
SEC. 12. Appropriations. - The initial funding requirements of the ESP shall be 
THREE BILLION TWO HUNDRED MILLION PESOS (Php 3,200,000.00) which shall be 
included in the Department of Transportation's annual appropriation indicated as a 
separate line-item. Thereafter, the subsequent funding requirements of the ESP shall 
be determined by the TWG: Provided, That the funding requirement for the


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establishment and operation of the TWG and the TWG Secretariat shall be included in
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the Department of Energy's annual appropriation.
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SEC. 11. Congressional Oversight. - The Joint Congressional Energy Commission 
(JCEC) shall exercise oversight powers over the implementation of this Act. The DOE, 
in coordination with relevant government agencies, shall submit an annual report to 
the JCEC not later than the fifteenth day of September, which shall include the latest 
relevant data, implementation review and reports, and policy and regulatory 
issuances.
SEC. 12. Implementing Rules and Regulations. - The DOE and DOTr, in 
coordination with relevant government agencies, shall issue the implementing rules 
and regulations (IRR) of this Act within six (6) months from its promulgation: Provided, 
That, the IRR shall likewise include the internal rules of procedure of the TWG under 
Section 5 of this Act.
SEC. 13. Separability Clause. - Any provision of this Act, which may be declared 
unconstitutional or invalid shall not have the effect of nullifying other portions or 
provisions hereof.
SEC. 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or one (1) newspaper of general circulation.
Approved,