Law of the People's Republic of China on Conserving Energy (adopted on November 1, 1997)

(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.