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Development Mechanism
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ORDER OF THE PRESIDENT OF THE PEOPLE'S REPUBLIC
OF CHINA
(No. 90)
The 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
of the People's Republic of China on November 1, 1997, is hereby promulgated and
shall enter into force as of January 1, 1998.
Jiang Zemin
President of the People's Republic of China
November 1, 1997
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)
CONTENTS
CHAPTER I GENERAL PROVISIONS
CHAPTER II ADMINISTRATION OF ENERGY CONSERVATION
CHAPTER III RATIONAL USE OF ENERGY
CHAPTER IV BETTERMENT OF ENERGY CONSERVATION TECHNOLOGY
CHAPTER V LEGAL RESPONSIBILITY
CHAPTER VI SUPPLEMENTARY PROVISIONS
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.
(Note: The laws and regulations are just for reference. Please check the original text in advance when officially using the laws and regulations.)
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