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ENERGY CONSERVATION LAW

Category  GEOLOGY, MINERAL RESOURCES AND ENERGY INDUSTRY Organ of Promulgation  The Standing Committee of the National People's Congress Status of Effect  In Force
Date of Promulgation  1997-11-01 Effective Date  1998-01-01  

Energy Conservation Law of the People's Republic of China



Contents
Chapter I  General Provisions
Chapter II  Energy Conservation Administration
Chapter III  Rational Energy Utilization
Chapter IV  Technological Progress in Energy Conservation
Chapter V  Legal Liability
Chapter VI  Supplementary Provision

(Adopted at the 28th Meeting of the Standing Committee of the Eighth

National People's Congress on November 1, 1997 and promulgated by Order
No. 90 of the President of the People's Republic of China on November 1,
1997)
Contents

    Chapter I   General Provisions

    Chapter II  Energy Conservation Administration

    Chapter III Rational Energy Utilization

    Chapter IV  Technological Progress in Energy Conservation

    Chapter V   Legal Liability

    Chapter VI  Supplementary Provision
Chapter I  General Provisions

    Article 1  This Law is enacted with a view to promoting energy
conservation in the whole society, improving energy utilization and
economic performance, protecting the environment, ensuring national
socio-economic development and satisfying the requirements of people's
livelihood.

    Article 2  The energy resources referred to in this Law mean coal,
crude oil, natural gas, electricity, coke, coal gas, thermal power,
finished petroleum products, liquefied petroleum gas, biological
energy and all other resources from which useful energy is obtained
directly or through processing or transformation.

    Article 3  The energy conservation referred to in this Law means
the strengthening of energy utilization administration, adoption of
measures which are technologically feasible, economically rational and
bearable to the environment and society, reduction in losses and waste
in all links from energy production to consumption and more efficient
and rational utilization of energy resources.

    Article 4  Energy conservation constitutes a long-term strategic
policy in the nation's economic development.

    The State Council and people's governments of provinces, autonomous
regions and municipalities directly under the Central Government should
step up the energy conservation work, rationally adjust industrial
structures, enterprise structures, product structures and energy consumption
structure, promote technological progress in energy conservation, reduce
energy consumption per unit of output value and energy consumption per unit
of product, improve development, processing and transformation, transportation
or transmission and supply of energy, gradually improve energy utilization
and promote the energy-saving type development of the national economy.

    The State encourages development and utilization of new energy resources
and renewable energy resources.

    Article 5  The State formulates the energy conservation policy, compiles
the energy conservation plan and integrates it into the national
socio-economic development plan, ensures rational utilization of energy
resources and coordinates it with economic development and environmental
protection.

    Article 6  The State encourages and supports the research and
dissemination of energy conservation science and technology, steps up
publicity and education in energy conservation, popularizes the scientific
knowledge of energy conservation and enhances the awareness of the whole
people in energy conservation.

    Article 7  All units and individuals shall fulfil the obligations of
energy conservation and have the right to report the acts of wastefulness
in energy resources.

    People's governments at all levels shall reward units and individuals
having scored prominent achievements in energy conservation or research and
dissemination of energy conservation science and technology.

    Article 8  The department regulating energy conservation work under
the State Council takes charge of the work of energy conservation supervision
and administration nationwide. The departments concerned under the State
Council shall be responsible for the work of energy conservation supervision
and administration within the scope of their respective functions and
responsibilities.

    The departments regulating energy conservation work of local people's
governments at or above the county level shall take charge of the work of
energy conservation supervision and administration within their respective
administrative areas. The departments concerned of local people's governments
at or above the county level shall be responsible for the work of energy
conservation supervision and administration within the scope of their
respective functions and responsibilities.
Chapter II  Energy Conservation Administration

    Article 9  The State Council and local people's governments at all levels
shall strengthen the leadership on the energy conservation work and go in for
disposition, coordination, supervision, inspection and promotion of the
energy conservation work every year.

    Article 10  The State Council and people's governments of provinces,
autonomous regions and municipalities directly under the Central Government
shall, pursuant to the policy of putting equal stress on economy of energy
and development of energy resources and giving top priority to energy
conservation, and on the basis of comparative authentication of technology,
economy and the environment of energy conservation and development of energy
resources, select investment projects in energy conservation and development
of energy resources on merit and formulate the energy investment plan.

    Article 11  The State Council and people's governments of provinces,
autonomous regions and municipalities directly under the Central Government
shall arrange energy conservation funds in the funds for capital construction
and technological transformation to be used in support of rational utilization
of energy and development of new energy resources and renewable energy
resources.

    Municipal and county people's governments shall arrange energy
conservation funds in the light of actual conditions to be used in support of
rational utilization of energy and development of new energy resources and
renewable energy resources.

    Article 12  The feasibility study of an investment project with fixed
assets shall include a specific authentication on rational energy utilization.

    The design and construction of the investment project with fixed assets
shall comply with standards for rational energy utilization and energy-saving
design standards.

    The examination and approval organ shall not approve the construction
in accordance with law of a project which fails to meet the standards for
rational energy utilization and energy-saving design standards; no
acceptance checks of the project failing to meet the standards for rational
energy utilization and energy-saving design standards shall be conducted.

    Article 13  New construction of energy-guzzling industrial projects with
obsolete technologies and heavy waste of energy resources shall be
prohibited. The catalogue and specific measures for the banning of new
construction of energy-guzzling industrial projects shall be worked out
by the department of energy conservation administration under the State
Council in conjunction with the departments concerned under the State Council.

    Article 14  The competent administrative department of standardization
under the State Council shall formulate the state standards for energy
conservation.

    In the case of no state standards as prescribed in the preceding
paragraph, the departments concerned under the State Council may formulate
relevant trade energy-saving standards and submit them to the competent
administrative department of standardization under the State Council for
the record.

    The energy-saving standards to be formulated shall be technologically
state-of-the-art and economically rational which shall be constantly perfected
and improved.

    Article 15  The department of energy conservation administration under
the State Council shall, in conjunction with the departments concerned under
the State Council, step up supervision over the trades producing wide-ranging
massive energy-consuming products, urge them to take energy-saving measures
and make efforts to upgrade product design and manufacturing technology and
gradually reduce the energy consumption per unit of product of the respective
trades.

    Article 16  The departments of energy conservation administration of
people's governments at or above the provincial level shall, in conjunction
with the departments concerned at the corresponding level, formulate ceilings
for energy consumption per unit of product for products guzzling energy in
the process of production.

    Formulation of ceilings for energy consumption per unit of product
should be scientific and rational.

    Article 17  The State practises the elimination system of outmoded
energy guzzling products and equipment.

    The catalogue of energy-guzzling products and equipment to be phased out
shall be determined and published by the department of energy conservation
administration under the State Council in conjunction with the departments
concerned under the State Council. Specific measures for implementation shall
be formulated by the department of energy conservation administration under
the State Council in conjunction with the departments concerned under the
State Council.

    Article 18  Enterprises may, in accordance with the principle of
voluntarism and in pursuance of the state provisions relating to product
quality authentication, apply to the authentication agencies acknowledged
by the department of product quality supervision and administration under
the State Council or the departments authorized by the department of product
quality supervision and administration under the State Council for
energy-consuming product energy-saving quality authentication; the enterprises
which pass the authentication shall obtain a energy-saving quality
authentication certificate and use the energy-saving quality authentication
mark on the energy-consuming products or their packages.

    Article 19  Statistical offices of all people's governments at or above
the county level shall, in conjunction with the departments concerned at the
corresponding level, do a good job in statistics of the state of energy
consumption and utilization and publish a bulletin at regular intervals
making public the state of energy consumption per unit of product of major
energy-consuming products etc.

    Article 20  The State shall step up energy conservation administration
over major energy-consuming units.

    The following energy-consuming units shall be the major energy-consuming
units:

    (1) energy-consuming units with aggregate annual energy consumption over
10,000 tons of standard coal;

    (2) energy-consuming units with aggregate annual energy consumption more
than 5,000 tons and less than 10,000 tons of standard coal designated by the
departments concerned under the State Council or the departments of energy
conservation administration of people's governments of provinces, autonomous
regions and municipalities directly under the Central Government.

    The departments of energy conservation administration of all people's
governments at or above the county level shall organize the departments
concerned in conducting supervision and inspection of the state of energy
utilization of major energy-consuming units, and may entrust units with
testing and measuring technical qualifications to conduct energy conservation
testing and measuring in accordance with law.

    The energy-saving requirements, energy-saving measures and control
measures for major energy-consuming units shall be formulated by the
department of energy conservation administration under the State Council
in conjunction with the departments concerned under the State Council.
Chapter III  Rational Energy Utilization

    Article 21  An energy-consuming unit shall, in accordance with the
principle of rational energy utilization, enhance energy conservation
management, formulate and organize the implementation of energy-saving
technical measures of the unit to reduce energy consumption.

    Energy-consuming units shall conduct energy conservation education
and organize related personnel to participate in energy conservation training.

    No personnel without undergoing energy conservation education and
training shall work in posts operating energy-consuming equipment.

    Article 22  Energy-consuming units shall strengthen quantification
management and perfect the system of energy consumption statistics and
analysis of the state of energy utilization.

    Article 23  Energy-consuming units shall set up the energy conservation
responsibility system and give reward to collectives and individuals having
made achievements in energy conservation.

    Article 24  units making products with high energy consumption shall
abide by the energy consumption ceilings per unit of product formulated
in accordance with law.

    Where the circumstances are serious in energy consumption exceeding
the ceilings for energy consumption per unit of product, treatment shall
be effected within a specified period. Treatment within a specified period
shall be decided upon by the departments of energy conservation administration
of people's governments at or above the county level pursuant to the terms of
reference prescribed by the State Council.

    Article 25  Units and individuals making and selling energy-consuming
products and using energy-consuming equipment must, within the time period
specified by the department of energy conservation administration under the
State Council in conjunction with the departments concerned under the State
Council, stop the production and sale of energy-consuming products phased
out by express state order, stop the use of energy-consuming equipment
phased out by express state order, and shall not transfer the phased-out
equipment to others for use.

    Article 26  Units and individuals making energy-consuming products shall
truthfully annotate the energy consumption index on product descriptions and
product marks.

    Article 27  Units and individuals making energy-consuming products shall
not use forged energy-saving quality authentication marks or imitate
energy-saving quality authentication marks.

    Article 28  Major energy-consuming units shall, pursuant to the relevant
state provisions, submit reports on the state of energy utilization at
regular intervals. The state of energy utilization includes such contents as
information on energy consumption, analyses of energy utilization efficiency
and energy conservation benefits and energy-saving measures.

    Article 29  Major energy-consuming units shall set up energy management
posts, employ energy management personnel from among staff members with
knowledge of the energy conservation speciality and practical experience
and the technical title above engineer and report to the energy conservation
administrative departments of people's governments at or above the county
level and the departments concerned for the record.

    Energy management personnel shall be responsible for the supervision and
inspection of the state of energy utilization of the respective units.

    Article 30  Workers and staff members of units and other urban and rural
inhabitants shall, pursuant to the state provisions, take measurements and pay
fees in the use of such energy resources as electricity, coal gas, natural gas
and coal produced by enterprises and shall not use them without charge or
practise the contractual lump-sum fee system.

    Article 31  Energy production and management units shall, pursuant to
the provisions of laws and regulations and agreement in contracts, supply
energy to the energy-consuming units.
Chapter IV  Technological Progress in Energy Conservation

    Article 32  The State encourages and supports the development of
state-of-the-art energy-saving technologies, determines the priorities and
direction in the development of state-of-the-art energy-saving technologies,
establishes and perfects the energy-saving technology service system and
fosters and standardizes the energy-saving technology market.

    Article 33  The State organizes the implementation of major energy
conservation scientific research projects, energy conservation demonstration
projects, comes up with energy-saving extension projects and guides
enterprises, institutions and individuals in adopting state-of-the-art
energy-saving techniques, technologies, equipment and materials.

    The State formulates preferential policies in support of the energy
conservation demonstration projects and energy-saving extension projects.

    Article 34  The State encourages the introduction of foreign
state-of-the-art energy-saving technologies and equipment and prohibits the
introduction of obsolete foreign energy-consuming technologies, equipment and
materials.

    Article 35  Energy conservation funds shall be arranged in the scientific
research funds arranged by the State Council and people's governments of
provinces, autonomous regions and municipalities directly under the Central
Government to be used in state-of-the-art energy-saving technology research.

    Article 36  All people's governments at or above the county level shall
organize the departments concerned in the promotion of scientific and
rational specialized production in conformity with energy conservation
requirements in accordance with the state industrial policies and energy
conservation technology policy.

    Article 37  Design and construction of buildings shall, pursuant to
the provisions of relevant laws and administrative regulations, adopt
energy-saving type building structures, materials, apparatuses
and products, improve insulation characteristics and reduce energy
consumption in heating, cooling and lighting.

    Article 38  People's governments at all levels shall, pursuant to the
policy of adapting to the local conditions, multi-energy complementarity,
integrated utilization and seeking benefits, strengthen energy construction
in the rural areas, develop and exploit such renewable energy and new energy
resources as methane, solar energy, wind energy, hydro-energy and underground
thermal power, etc.

    Article 39  The State encourages the development of the following
general-purpose energy-saving technologies:

    (1) extension of joint production of heat and electricity and central
heating, improvement in thermal power generation unit utilization, development
of thermal power ladder-type utilization technology, joint production
technology of heat, electricity and cooling and triple supply technology of
heat, electricity and coal gas and improvement in integrated utilization of
thermal power;

    (2) gradual realization of economic operations of electric motors, blast
motors, pumping equipment and systems, development of electric motor speed
regulation electricity-saving technology and electricity electronic
electricity-saving technology, development, production and popularization
of fine-quality low-price energy-saving apparatuses and improvement of
electric power utilization;

    (3) development and extension of such clean coal technologies as the flow
bed burning, smokeless burning, gasification, liquefaction suitable to the
types of coal in the country and improvement of coal utilization;

    (4) development and extension of other general-purpose energy-saving
technologies which have been proved in energy conservation work to be
technologically mature and with marked benefits.

    Article 40  All trades shall formulate trade energy conservation
technology policies, develop and extend new energy-saving technologies,
new techniques, new equipment and new materials, restrict or phase out
obsolete energy-guzzling technologies, techniques, equipment and materials.

    Article 41  The department of energy conservation administration under
the State Council shall, in conjunction with the departments concerned under
the State Council, lay down general-purpose and trade-wise specific
energy-saving technical targets, requirements and measures, and make
timely revisions in the light of the development of the economy and
energy conservation technologies, improve energy utilization, reduce energy
consumption so as to enable energy utilization in China to gradually
catch up with the advanced international levels.
Chapter V  Legal Liability

    Article 42  With respect to new construction of an energy-guzzling
industrial project expressly prohibited by state order in violation of the
provisions of Article 13 of this Law, the department of energy conservation
administration of the people's government at or above the county level shall
come up with suggestions which shall be submitted to the people's government
at the corresponding level pursuant to the terms of reference prescribed by
the State Council to order the said unit to stop going into production or stop
its use.

    Article 43  With respect to a unit making heavy energy-consuming products
exceeding ceilings for energy consumption per unit of product in violation of
the provisions of Article 24 of this law where the circumstances are serious
which does not carry out treatment as directed for treatment within the
specified time period or fails to meet the requirements for treatment, the
department of energy conservation administration of the people's government
at or above the county level may come up with suggestions which shall be
submitted to the people's government at the corresponding level pursuant
to the terms of reference prescribed by the State Council to order the
said unit to suspend operations for consolidation or close down.

    Article 44  With respect to any unit making and selling energy-consuming
products phased out by express state order in violation of the provisions
of Article 25 of this Law, the department of product quality supervision
administration of the people's government at or above the county level shall
order the said unit to stop the production and sale of the energy-consuming
products phased out by express state order, confiscate the illegally
produced and sold energy-consuming products phased out by express state
order and the illegal gains, and concurrently impose a fine more than
100% less than five times of the amount of the illegal gains; the department
of industry and commerce administration of the people's government at or above
the county level may revoke its business licence.

    Article 45  With respect to any unit using energy-consuming equipment
phased out by express state order in violation of the provisions of Article
25 of this Law, the department of energy conservation administration of the
people's government at or above the county level shall order the said unit
to stop its use thereof and confiscate the energy-consuming equipment
phased out by express state order; where the circumstances are serious,
the department of energy conservation administration of the people's
government at or above the county level may come up with suggestions which
shall be submitted to the people's government at the corresponding level
pursuant to the terms of reference prescribed by the State Council to order it
to suspend operations for consolidation or close down.

    Article 46  With respect to anyone who transfers phased-out
energy-consuming equipment to others for use in violation of the provisions of
Article 25 of this Law, the department of product quality supervision
administration of the people's government at or above the county level shall
confiscate the illegal gains and concurrently impose a fine more than
100% less than five times of the amount of the illegal gains.

    Article 47  With respect to any unit that does not annotate the energy
consumption index in the product descriptions and on the product mark in
violation of the provisions of Article 26 of this Law, the department of
product quality supervision administration of the people's government at or
above the county level shall order it to make a rectification within the
specified time period and may impose a fine of less than RMB 50,000 Yuan.

    With respect to any unit whose annotation of the energy consumption index
in the product descriptions and on the product mark is not in conformity
with the actual conditions of the product in violation of the provisions
of Article 26 of this Law, the violator shall bear civil liability pursuant
to the provisions of relevant laws in addition to the penalty in accordance
with the provisions of the preceding paragraph.

    Article 48  With respect to any unit using forged energy-saving quality
authentication mark or imitating energy-saving quality authentication mark
in violation of the provisions of Article 27 of this Law, the department of
product quality supervision administration of the people's government at or
above the county level shall order it to make a rectification openly,
confiscate the illegal gains and may concurrently impose a fine more than 100%
less than five times the amount of the illegal gains.

    Article 49  State functionaries who abuse power, neglect their duties,
indulge in self-seeking misconduct in energy conservation work shall, if a
crime has been constituted, be investigated for criminal liability; where a
crime has not been constituted, administrative sanctions shall be imposed.
Chapter VI  Supplementary Provision

    Article 50  This Law shall enter into force as of January 1, 1998.



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