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Law of the People's Republic of China on Conserving Energy

(Adopted at the 28th Meeting of the Standing Committee of the Eighth  National People's Congress

on November 1, 1997)


CHAPTER I GENERAL PROVISIONS 

Article 1 This Law is formulated in order to promote energy conservation by  all sectors of the society, increase the efficiency in the use of energy  and its economic results, protect the environment, ensure national  economic and social development, and meet the people's needs in everyday life.

Article 2 The term "energy" as used in this Law refers to coal, crude oil,  natural gas, power, coke, coal gas, heat, processed oil, liquefied petroleum  gas, biomass energy and other resources from which useful energy can be  derived directly or through processing or conversion.

Article 3 The term "energy conservation" as used in this Law means:  enhancing management in the use of energy; adopting measures which are  technologically feasible, economically rational, and, by reducing loss and  waste at every stage from production through to consumption of energy,  environmentally and socially acceptable in order to use energy more  efficiently and rationally.

Article 4 Energy conservation is a long-term concept of strategy of the State  for national economic development.

The State Council and the people's governments of provinces, autonomous  regions, and municipalities directly under the Central Government shall  strengthen their efforts in energy conservation; readjust in a rational way  the industrial structure, pattern of enterprises, product mix and pattern  of energy consumption; facilitate technological progress for energy  conservation; reduce energy consumption per unit output value and per unit  product; and improve the exploitation, processing, conversion, transmission  and supply of energy so as to gradually increase the utilization rate  of energy and promote the development of the national economy in an  energy-efficient manner.

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

Article 5 The State formulates policies and plans for energy  conservation, which shall be incorporated into plans for national  economic and social development so as to ensure the rational utilization of  energy resources and coordinate energy conservation with economic  development and environmental protection.

Article 6 The State encourages and supports research and dissemination of  science and technology for energy conservation and makes greater efforts  to publicize and educate the people in the importance of energy conservation,   spreading scientific knowledge about energy conservation among all the  people so as to enhance their awareness of the need.

Article 7 All organizations and individuals shall fulfill their  obligation to conserve energy and have the right to report against any waste  of energy.

The people's governments at all levels shall give rewards to any  organizations or individuals that achieve outstanding successes in  energy conservation or in research or dissemination of science and  technology for energy conservation.

Article 8 The administrative department for energy conservation under the  State Council shall be in charge of supervision over and  administration of the work for energy conservation throughout the  country. The relevant departments under the State Council shall exercise  supervision and administration in the work within the scope of their  functions and responsibilities respectively.

The administrative departments for energy conservation under the local  people's governments at or above the county level shall be in charge of  supervision over and administration of the work for energy conservation in  their respective administrative areas. The relevant departments of the  local people's governments at or above the county level shall exercise  supervision and administration in the work within the scope of their  functions and responsibilities respectively.

CHAPTER II ADMINISTRATION OF ENERGY CONSERVATION

Article 9 The State Council and the local people's governments at all  levels shall strengthen leadership in energy conservation, making plans for,  coordinating, supervising, inspecting and promoting the work of energy  conservation every year.

Article 10 The State Council and the people's governments of provinces,  autonomous regions, and municipalities directly under the Central  Government shall, according to the principle of making efforts  simultaneously to conserve energy and exploit it while giving first  priority to the former, decide on the optional energy conservation and  exploitation projects for investment and work out plans for such  investment on the basis of a comparative demonstration in terms of  technology, economy and environment with regard to energy conservation and  exploitation.

Article 11 The State Council and the people's governments of provinces,  autonomous regions, and municipalities directly under the Central  Government shall allocate funds for energy conservation in funds for  capital construction and technical upgrading to support rational  utilization of energy and exploitation of new and renewable energy  resources.

People's governments at the municipal and county levels shall allocate funds   for energy conservation according to their actual conditions in order to  support rational utilization of energy and exploitation of new and renewable  energy resources.

Article 12 Special demonstration of rational use of energy shall be  included in the feasibility study reports of fixed assets projects for  investment.

The fixed assets projects for investment shall be designed and  constructed in conformity with the standards for rational use of energy and  for energy conservation design.

Organs authorized with the power of examining and approving construction  projects according to law may not approve the construction of projects which   fail to conform to the standards for rational use of energy and for energy  conservation design or accept such projects when completed.

Article 13 It is prohibited to construct new industrial projects that are  technically outdated, highly energy-consuming, and prodigiously wasting  energy. The administrative department for energy conservation under the  State Council shall, together with the other relevant departments  under the State Council, prepare a catalogue of highly energy-consuming  industrial projects that are prohibited from being constructed and shall  formulate specific measures for implementation.

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

In the absence of the national standards mentioned above, the relevant  departments under the State Council may formulate according to law trade  standards for energy conservation and submit them to the administrative  department for standardization under the State Council for the record.

Standards for energy conservation shall be technically advanced and  economically rational and be subject to continued improvement.

Article 15 The administrative department for energy conservation under the  State Council shall, together with the relevant departments under the State   Council, exercise strict supervision over the trades and professions  that turn out widely used energy-using products in large quantities and  urge them to adopt energy-conserving measures, make efforts to improve  product design and manufacturing technology and gradually reduce energy  consumption per unit product in respective trades and professions.

Article 16 The administrative department for energy conservation of the  people's governments at or above the provincial level shall, together with  the relevant departments of the corresponding governments, set quotas for   energy consumption per unit product for products which consume excessive  amounts of energy in the course of production.

The quota for energy consumption per unit product shall be set in a  scientific and rational manner.

Article 17 The State applies an elimination system for outdated and  highly energy-consuming products and equipment.

A catalogue of highly energy-consuming products and equipment to be  eliminated shall be decided on by the administrative department for  energy conservation under the State Council together with the relevant  departments under the State Council and made known to the public. The said   departments shall likewise formulate specific measures for  implementation.

Article 18 Enterprises may, on a voluntary basis and in accordance with the  State regulations regarding certification of product quality, apply to the  administrative department for supervision over product quality under the  State Council or to the certification agencies confirmed by the organs  authorized by the said department under the State Council for certifying the  quality of their energy-using products in terms of energy conservation. After  being proved qualified, the enterprises shall obtain the certificates for the  quality of their energy-using products in terms of energy conservation and  have labels bearing such certificates affixed to their energy-using products  or to the packaging thereof.

Article 19 The statistics institutions of the people's governments at or above  the county level shall, together with the relevant departments of the  corresponding governments, compile accurate statistics on energy  consumption and utilization and regularly issue statistics bulletins about   energy consumption per unit product for major energy-consuming products,  etc.

Article 20 The State shall exercise strict administration of energy  conservation in key energy-using units.

The following are key energy-using units:

(1) units that consume an annual total of energy equaling over 10,000 tons  of standard coal each; and

(2) units that consume an annual total of energy equaling between 5,000 and  10,000 tons of standard coal each, as determined by the relevant department  under the State Council or the administrative departments for energy  conservation of the people's governments of provinces, autonomous regions, and  municipalities directly under the Central Government.

The administrative departments for energy conservation of the  governments at or above the county level shall see to it that the  relevant departments exercise supervision over and conduct inspection of  energy utilization in the key energy-using units, and they may entrust units   that are technically qualified with the test and measurement of energy  conservation.

The administrative department for energy conservation under the State  Council shall, together with the relevant departments under the State  Council, set the requirements and formulate measures for energy  conservation and administration in the key energy-using units.

CHAPTER III RATIONAL USE OF ENERGY

Article 21 Energy-using units shall, in accordance with the principle of  rational use of energy, exercise strict administration of energy  conservation, formulate and implement technical measures for energy  conservation in respective units so as to reduce energy consumption.

Energy-using units shall conduct education in energy conservation and train  the employees concerned for the purpose.

Employees who have not received any education or training in energy  conservation shall not be allowed to operate energy-consuming machines.

Article 22 Energy-using units shall improve their quantitative  management in respect of energy, and establish a sound system of energy  consumption statistics and of energy utilization analysis.

Article 23 Energy-using units shall establish a responsibility system for  energy conservation and grant rewards to collectives and individuals that  achieve successes in energy conservation.

Article 24 Units that manufacture energy-consuming products shall comply with  the quota set for energy consumption per unit product according to law.

Units that use energy exceeding the quota for energy consumption per unit  product to a serious extent shall be required to solve the problem within a  time limit. This shall be determined by the administrative departments for  energy conservation of the people's governments at or above the county  level within the limits of authority as prescribed by the State Council.

Article 25 Units or individuals that manufacture or sell energy-using  products or use energy-using equipment shall stop producing and selling such  products and using such equipment, which the State has formally decided to  eliminate, within the time limit set by the administrative department for   energy conservation together with the relevant departments under the  state Council, and they may not transfer such equipment to any other users.

Article 26 Units and individuals that manufacture energy-using products shall   have the norm for energy consumption clearly indicated on the labels  affixed to their products or in the specifications thereof.

Article 27 Units and individuals that manufacture energy-using products may  not use labels bearing forged certificates for the quality of their  energy-conserving products or labels bearing the certificates for the  quality of another's energy-conserving products.

Article 28 Key energy-using units shall, in accordance with the relevant  regulations of the State, regularly submit reports on their utilization of  energy. These reports shall include information on energy  consumption, energy efficiency, analysis of the benefits derived from  energy conservation and the measures taken for energy conservation.

Article 29 Key energy-using units shall establish positions for  administration of energy, appoint employees to such positions from among the  ones who have the expertise for and practical experience in energy  conservation and who have the technical title at or above the level of  engineer, and report the matter to the administrative department for  energy conservation and the relevant departments of the people's  government at or above the county level for the record.

Energy administrators shall be responsible for supervision over and  inspection of their own units' utilization of energy.

Article 30 Employees of any units as well as other rural and urban  residents who use such energy as electricity, coal gas, natural gas and coal  produced by enterprises shall have the amount used measured and pay for it in  accordance with State regulations. Such energy may not be used without  compensation and no payment shall be made at a lump rate.

Article 31 Units producing and supplying energy shall provide energy to  energy-using units in accordance with the provisions of laws,  regulations and contracts.

CHAPTER IV BETTERMENT OF ENERGY CONSERVATION TECHNOLOGY

Article 32 The State encourages and supports the development of advanced  technology for energy conservation, determines the priority and  direction for the endeavor, establishes and keeps improving the service  system for such technology, and fosters and standardizes the market for it.

Article 33 The State coordinates efforts for scientific research of key  energy conservation projects and demonstration projects of energy  conservation and recommends energy conservation projects for  dissemination, providing guidance for enterprises, institutions and  individuals to employ advanced techniques, skills, equipment and  material for energy conservation.

The State formulates preferential policies in support of projects for  demonstration and dissemination of energy conservation.

Article 34 The State encourages the introduction of advanced energy  conservation technology and equipment from abroad and prohibits the  introduction of outdated energy-using technology, equipment or material from  abroad.

Article 35 The funds allocated by the State Council and the people's  governments of provinces, autonomous regions, and municipalities  directly under the Central Government for scientific research shall  include funds for conserving energy, which shall be used for research in  advanced technology for energy conservation.

Article 36 People's governments at or above the county level shall  coordinate the efforts of the relevant departments to promote, in  accordance with the State's industrial policy and policy for energy  conservation technology, scientific and rational specialized production that  meets the requirements of energy conservation.

Article 37 In designing and constructing buildings, energy-conserving  building structures, materials, appliances and products shall be  employed according to the provisions of relevant laws and administrative rules   and regulations in order to improve thermal and insulating performance   and reduce energy consumption for heating, cooling and lighting  purposes.

Article 38 People's government's at all levels shall, in accordance with the  principles of suitability to local conditions, provision of multiple forms of  energy to complement each other, comprehensive utilization and stress on  benefits, enhance development of energy in rural areas and exploit and  utilize methane, solar energy, wind energy, hydro energy, geothermal energy,  and other renewable and new energy resources.

Article 39 The State encourages the development of the following  universal energy conservation technologies:

(1) promote the wide use of cogeneration of heat and power and district  heating, increase the utilization rate of heat and power units,  developheat-cascading technology, combined heat, power and cooling  technology and combined heat, power and coal gas technology, and  increase the efficiency of thermal energy application in an all-round way;

(2) gradually achieve more-efficient operation of electric motors, fans,  pumping equipment and systems; develop adjustable speed motor drives for  energy conservation and electric-electronic power saving technology;  develop, produce and disseminate the use of high-quality and low-cost  energy-efficient appliances and equipment; and increase the efficiency of  electric power;

(3) develop and disseminate the use of clean coal technologies,  including fluidized bed combustion, smokeless combustion, and  gasification and liquefaction, that are suited to domestic coals in order  to increase coal utilization efficiency; and

(4) develop and disseminate other universal energy-efficient  technologies that are proved mature and yield remarkable benefits.

Article 40 Each trade and profession shall work out policies for energy-  efficient technology for its own trade or profession, develop and  disseminate new energy-efficient technologies, techniques, equipment and  materials, restrict or eliminate energy-consuming outdated technologies,  techniques, equipment and materials.

Article 41 The administrative department for energy conservation under the  State Council shall, together with the relevant departments under the State  Council, formulate both general technical norms, requirements and measures  for energy conservation and specific ones for different trades and  professions, and modify them in keeping with economic growth and progress  in energy conservation technology with the aim of increasing energy  utilization rate, reducing energy consumption and gradually bringing  China's energy utilization up to the advanced international level.

CHAPTER V LEGAL RESPONSIBILITY

Article 42 Where a highly energy-consuming industrial project, the  construction of which is formally prohibited by the State, is put up in  violation of the provisions of Article 13 of this Law, the  administrative department for energy conservation of the people's  government at or above the county level shall submit its proposal to the  people's government to which it belongs that the government shall, in line  with the limits of authority as prescribed by the State Council, order  suspension of production or use of the project.

Article 43 Where an enterprise that manufactures energy-consuming  products uses energy exceeding the quota set for energy consumption per unit  product, in violation of the provisions of Article 24 of this Law and to a  serious extent, and fails to solve the problem or meet the requirements  within the time limit, the administrative department for energy  conservation of the people's government at or above the county level may  submit its proposal to the people's government to which it belongs that the  government shall, in line with the limits of authority as prescribed by the  State Council, order suspension of production for consolidation or closedown.

Article 44 Where an enterprise that, in violation of the provisions of  Article 25 of this Law, produces or sells energy-using products which the  State has eliminated by official order, the administrative department  for supervision over product quality of the people's government at  or above the county level shall order that it stop producing or  selling such products, confiscate such products and the illegal gains  therefrom and impose a fine of not less than one time but not more than  five times the illegal gains; and the administrative department for  industry and commerce of the people's government at or above the county  level may revoke its business license.

Article 45 Where an enterprise uses, in violation of the provisions of  Article 25 of this Law, energy-using equipment which the State has  eliminated by official order, the administrative department for energy  conservation of the people's government at or above the county level shall   order that it stop using such equipment and have the equipment  confiscated; if the circumstances are serious, the said department may  submit its proposal to the people's government to which it belongs that the  government shall, in line with the limits of authority as prescribed by the  State Council, order suspension of operation for consolidation or close-down.

Article 46 Where a unit or individual, in violation of the provisions of  Article 25 of this Law, transfers eliminated energy-using equipment to  another user, the administrative department for supervision over product  quality of the people's government at or above the county level shall  confiscate its or his illegal gains and impose a fine of not less than one  time but not more than five times the illegal gains.

Article 47 Where a unit or individual, in violation of the provisions of  Article 26 of this Law, fails to clearly indicate the norm for energy  consumption in its or his product specifications or labels, the  administrative department for supervision over product quality of the  people's government at or above the county level shall order that it or he  make amends within a time limit and may impose a fine of not more than  50,000 yuan.

Where a unit or individual, in violation of the provisions of Article 26 of  this Law, indicates the norms for energy consumption, in its or his product  specifications or labels, that do not conform to the actual conditions of  the products, the unit or individual concerned shall, in addition to being  punished in accordance with the provisions of the preceding paragraph,  bear civil liabilities in accordance with the provisions of relevant laws.

Article 48 Where a unit or individual, in violation of the provisions of  Article 27 of this Law, uses labels bearing forged certificates for the  quality of their energy-conserving products or labels bearing the  certificates for the quality of another's energy-conserving products, the  administrative department for supervision over product quality of the  people's government at or above the county level shall order that it or he  publicly make amends and shall confiscate its or his illegal gains and may  also impose a fine of not less than one time but not more than five times the  illegal gains.

Article 49 Any State functionary who, in the work of energy  conservation, abuses his power, neglects his duty or engages in  malpractices for personal gain to such an extent as to constitute a crime   shall be investigated for criminal responsibility according to law. If  it does not constitutes a crime, he shall be given administrative  sanctions.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 50 This law shall go into force as of January 1, 1998.  

(This English version is for your reference only.In case any discrepancy exists between the Chinese and English context, the Chinese version shall prevail.)

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