Energy Law of the People's Republic of China (Draft for Comments)

Energy Law of the People's Republic of China (Draft for Comments)

Energy Law of the People's Republic of China (Draft for Comments)

December 3, 2007

Chapter I General Provisions
Article 1 Purpose
Article 2 Applicable Scope
Article 3 Priority of Energy-Saving
Article 4 Ensuring Energy Security
Article 5 Coordinating Development of Energy and Eco-Environment
Article 6 Resources Allocation by Means of Market Mechanism
Article 7 Universal Service
Article 8 Innovation of Energy Science and Technology
Article 9 International Co-operation in Energy Sector
Article 10 Unified Administration of Energy
Article 11 Legal Force
Chapter II Comprehensive Energy Management
Article 12 Energy Administrative System
Article 13 Energy Administrative Department
Article 14 Energy Industry Associations
Article 15 Public Participation in Energy-related Decision-making
Article 16 Property Right System for Energy Investment
Article 17 Administration of Energy Import and Export
Article 18 Energy statistics, Forecast and Warning
Article 19 Energy Standardization and Administration
Chapter III Energy Strategy and Planning
Article 20 Status and Content of Energy Strategy
Article 21 Basis of Formulation of Energy Strategy
Article 22 Preparation, Evaluation and Modification of Energy Strategy
Article 23 Contents, Composition and Categorization of National Energy Planning
Article 24 Basis by which the National Energy Planning Is Formulated
Article 25 Linkage amongst Various Types of Energy Plans
Article 26 Formulation of national energy plans
Article 27 Evaluation and Modification of National Energy Planning
Article 28 Implementation and Supervision of National Energy Planning
Article 29 Local Energy Plans
Chapter IV Development, Processing and Conversion of Energy
Article 30 Basic Principle
Article 31 Ownership of Energy Resources
Article 32 Access to Development Projects of Energy Mineral Resources
Article 33 Access to Development Projects of Renewable Energy Resources
Article 34 Rational Exploitation of Energy Resources
Article 35 Comprehensive and Efficient Development and Utilization of Energy
Article 36 Development of Clean Energy
Article 37 Development of Alternative Energy
Article 38 Development, Utilization and Site Protection of Civil Nuclear Energy
Article 39 Construction of energy bases
Article 40 Access to Energy Processing and Conversion Projects
Article 41 Enterprises' Obligation of Safety and Environmental Protection
Article 42 Compensation for eco-environment
Article 43 Disposal of Nuclear Waste
Chapter V Energy Supply and Service
Article 44 Principle of Energy Supply
Article 45 Subjects of Energy Supply Market
Article 46 Access to Energy Supply Business
Article 47 Construction of Cross-region Energy Infrastructure Projects
Article 48 Opening of Energy Transmission Pipeline Network Facilities
Article 49 Protection of Energy Infrastructure
Article 50 Universal Service of Energy
Article 51 Examination and Approval of Winding-up and Suspension of Business Operation
Article 52 Obligation of Energy Users
Article 53 Supervision and Management over the Link of natural monopoly of energy
Chapter VI Energy Saving
Article 54 Implementation of Energy Saving Priority Strategy
Article 55 Optimization of Industrial Structure for Energy Saving
Article 56 Optimization of Consumption Structure for Energy Saving
Article 57 Energy Saving by Technology
Article 58 Energy Saving by Administration
Article 59 Energy Saving in Key Fields
Article 60 Governmental Measures for Energy Saving
Article 61 Energy-Saving Market Mechanism
Chapter VII Energy Reserve
Article 62 Management of Energy Reserves
Article 63 Measures for Classification and Management of Energy Reserves
Article 64 Reserves of Energy Product
Article 65 Establishment and Management of Petroleum Reserves
Article 66 Reserves of Energy Resources
Article 67 Utilization of the State Energy Reserves
Article 68 Local Reserves of Energy Products
Chapter VIII Energy Emergency Treatment and Response
Article 69 Scope and Stage of Emergency
Article 70 Emergency Preventive Plan
Article 71 Classification of Emergencies
Article 72 Identification of Emergencies
Article 73 Principle for Emergency Handling
Article 74 Terms and Conditions for the Authorization and Restriction of Emergency Response
Article 75 Priorities in Emergency Safeguards
Article 76 Responsibilities and Obligations of the Party Concerned in Emergency
Article 77 Follow-up Problems to Emergency
Chapter IX Rural Energy
Article 78 Principle of Energy Development in Rural Areas
Article 79 Implementation of Energy Planning in Rural
Article 80 Preferential Policies
Article 81 Rural Energy Guarantee
Article 82 Optimization of Energy Consumption Structure in Rural Areas
Article 83 Support of Electric Power in Remote Rural Areas
Article 84 Development of Biomass Energy in Rural Areas
Article 85 Energy-Saving in Rural Areas
Article 86 Promotion and Service-Providing of Energy Technology in Rural Areas
Chapter X Energy Pricing and Fiscal Policy
Article 87 Pricing Mechanism
Article 88 Market-Adjusted Prices
Article 89 Prices of Natural Monopoly and Important Energies
Article 90 Price Incentive and Restrictive Policies
Article 91 Basic Principles of Energy Fiscal Policy
Article 92 Energy Expenditure Budget
Article 93 Special Fund for Energy Development
Article 94 Government Investment in Energy Field
Article 95 Government Procurement for Energy-Saving
Article 96 Incentive Taxation Policy for Energy
Article 97 Restrictive Taxation Policy for Energy
Article 98 Energy Resource Tax
Article 99 Energy Consumption Tax
Article 100 Application of Finance-Taxation Policy
Chapter XI Energy Science and Technology
Article 101 Development Policy for Energy Science and Technology
Article 102 Investment in Energy Science and Technology
Article 103 Development Mechanism for Energy Science and Technology
Article 104 Priority Areas of Energy Science and Technology
Article 105 Promotion and Application of the R&D Results in the Energy Sector
Article 106 Rewarding Policy for Energy Science and Technology
Article 107 Energy Education and Talent Training
Article 108 Promoting Energy Science and Technology among the General Public
Chapter XII International Co-operation in the Energy Sector
Article 109 Principles and Modes of International Cooperation in the Energy Sector
Article 110 Overseas Cooperation in the Energy Sector
Article 111 Domestic Cooperation in the Energy Sector
Article 112 Cooperation in Energy Trade
Article 113 Cooperation in Energy Transportation
Article 114 Cooperation in Energy Science and Education
Article 115 Cooperation in Energy Security
Chapter XIII Supervision and Inspection
Article 116 Supervision by the People's Congress
Article 117 Administrative Supervision
Article 118 Public Supervision
Article 119 Access to Documents and Information
Article 120 On-site Inspection
Article 121 Compulsory Measures
Article 122 Compulsory Disclosure of Information by Energy-intensive Enterprises
Article 123 Supervision of Key Energy Enterprises
Chapter XV Legal Liabilities
Article 124 Government Liabilities: Administrative Liabilities
Article 125 Liabilities of Government Personnel: Criminal Liabilities
Article 126 Government Responsibilities: State Compensation Liabilities
Article 127 Liabilities of Specialty Energy Enterprises: Obligation to Open the Pipeline Facilities
Article 128 Liabilities of Specialty Energy Enterprises: Implementation of Obligation to Provide Universal Services
Article 129 Liabilities of Specialty Energy Enterprises: Punishment for Illegal Restructuring, Merger and Acquisition
Article 130 Liabilities of General Energy Enterprises: Report Obligation
Article 131 Liabilities of General Energy Enterprises: Obligation to Assist in Law Enforcement Procedures
Article 132 Liabilities of General Energy Enterprises: Obligations of Entities
Article 133 Liabilities of Energy Users: Liabilities of Key Energy-Using Enterprises
Article 134 Liabilities of Energy Users: Fulfillment of the Compulsory Obligation to Disclose Information to the Public
Article 135 Liabilities for Social Entities: Punishment for Illegal Behaviors
Article 136 Civil Liabilities
Article 137 Precedence of Civil Compensation
Article 138 Administrative Remedy
Chapter XV Supplementary Provisions
Article 139 Legal Definitions of Terms
Article 140 Effective Date of the Law

Chapter I General Provisions
 
Article 1 Purpose
In order to standardize the development, utilization and management of the energy, establish a stable, economic, clean and sustainable energy supply and service system, improve the energy efficiency and ensure energy safety, promote the development of a resource-saving and environmental-friendly society and accelerate the harmonious development of energy, economy and the society, this Law is hereby formulated.
 
Article 2 Applicable Scope
This Law is applicable for utilization and management of energy exploitation within the territory or other sea areas under the jurisdiction of the People's Republic of China.
The energy mentioned herein means various available energy resources that can be derived directly or through processing or conversion, including the primary energy sources like coal, crude oil, natural gas, coal bed methane, waterpower, nuclear energy, wind power, solar energy, geothermal energy and bio-energy, the secondary energy sources like electric power, thermal power and refined product oil, and other new energy sources and renewable energy sources.
 
Article 3 Priority of Energy-Saving
The development and utilization of the energy shall be subject to basic state policy on resources saving and upholding the basic guide line of paying heed to the development and saving and placing priority on saving.
The whole nation shall strive for saving energy to improve the energy-efficiency.
 
Article 4 Ensuring Energy Security
The nation shall develop its own energy industry, diversify the development of its energy industry and enhance its energy supply capability, and ensure energy security.
 
Article 5 Coordinating Development of Energy and Eco-Environment
The nation shall actively optimize its energy structure, encourage developing new energy and renewable energy, support the development and utilization of clean, low-carbon energy, promote the development of alternative energy and the clean usage of energy to effectively fight against the climate change, and facilitate the harmonious relationship of energy utilization and eco-environment protection.
 
Article 6 Resources Allocation by Means of Market Mechanism
The nation shall actively foster and standardize the energy market, make full use of the market's basic role in resources allocation, and encourage all entities of various ownerships to legally engage in the activities of developing and utilizing the energy.
 
Article 7 Universal Service
The nation shall establish and ameliorate the universal energy service mechanism to ensure that citizens are entitled to enjoy the basic energy supply and service.
 
Article 8 Innovation of Energy Science and Technology
The state shall adhere to the principle of relying on the advance in science and technology to promote energy development, enhance the scientific and technical research, development and application in energy, and support self-innovation on energy science and technology.
 
Article 9 International Co-operation in Energy Sector
The state shall adhere to the policy of "Equality and Mutual Benefit, Win-Win Co-operation, and coordination and safeguard", and actively promote international co-operation in energy sector.
 
Article 10 Unified Administration of Energy
The nation shall strengthen and standardize the energy management in compliance with the principle of "Unified Management, level-by-level responsibility and rights-obligation consistency".
 
Article 11 Legal Force
This Law is a fundamental law in energy sector, and it shall guide and coordinate any other separate law in energy sector.

Chapter II Comprehensive Energy Management
 
Article 12 Energy Administrative System
The competent energy administrative department under the State Council is responsible for the administration of energy-related matters in the country in a uniform manner; while other departments under the State Council are responsible for energy management within the scopes of their respective duties.
Energy administrative department of the people's governments at or above county level are responsible for the energy management within the administrative regions under their respective jurisdiction; while other relevant departments of the people's governments at identical levels are responsible for the energy administration within the scopes of their respective duties.
 
Article 13 Energy Administrative Departments
The competent energy administrative department under the State Council shall organize and put into force the country's energy strategy, formulate and implement energy plans and energy policies, manage all energy-related industries in the country, and work out comprehensive plan for the development and reform of the energy domain in accordance with the laws. The concrete duties of the competent energy administrative department under the State Council shall be stipulated by the State Council.
Energy management authorities of the people's governments at or above county level are responsible for managing the energy development, utilization and energy saving activities within the administrative regions under their respective jurisdiction. The setting of local energy administrative departments and concrete duties thereof shall be stipulated by local people's governments.
 
Article 14 Energy Industry Associations
As far as energy administration is concerned, it is necessary to enable energy industry associations and other social intermediaries to play their due roles.
Energy-related industry associations shall reflect the development demands of the energy industry and enterprises, provide services to enterprises in terms of industrial statistics, industrial standards, technical service, market development and information consultancy, and also proffer consultation to governments in regard to their decision-making.
 
Article 15 Public Participation in Energy-related Decision-making
People's governments at all levels and relevant departments shall, when making important decisions that touch upon public interests and security, listen to the opinions of relevant industry associations, enterprises and the general public, so as to make their energy decisions more democratic, scientific and transparent.
 
Article 16 Property Right System for Energy Investment
In the energy domain, a diversified property right system for investment is implemented.
Since energy field concerns the lifeline of the national security and economy, an investment property right system with state-owned capital occupying majority shareholding should be implemented. The concrete measures shall be formulated by the competent energy administrative department under the State Council in conjunction with relevant departments.
In the energy fields stipulated in the above article, those enterprises engaged in energy utilization and development activities which conduct restructuring or asset merger and acquisition shall report to the competent energy administrative department under the State Council for examination and approval.
 
Article 17 Administration of Energy Import and Export
The competent energy administrative department under the State Council shall work together with import and export administrative departments to formulate energy import and export policies, encourage importation of clean, quality energy and advanced energy technology, and reinforce the management and supervision over exportation of energy and energy- guzzling products.
 
Article 18 Energy statistics, Forecast and Warning
Competent statistical departments of the people's governments at all levels shall work with energy administrative departments to establish and ameliorate the energy statistical system, and release energy statistical information in accordance with the law.
Energy administrative departments of the people's governments at all levels shall establish an energy forecast and warning mechanism.
 
Article 19 Energy Standardization Administration
The standardization administrative department under the State Council shall work together with the energy administrative department to formulate relevant national standards towards major energy products, energy-guzzling products and equipment. Where laws and administrative stipulate otherwise such laws and administrative shall prevail.

Chapter III Energy Strategy and Planning
 
Article 20 Status and Content of Energy Strategy
National energy strategy is an overall guidance for planning and directing the sustainable energy development of the country and ensuring the energy security, and also the basis of formulating energy plans and energy policies.
The national energy strategy shall outline the strategic thinking, strategic objective, strategic layout, strategic emphasis and strategic measures of the state with regard to energy development.
 
Article 21 Basis of Formulation of Energy Strategy
The national energy strategy shall be formulated in accordance with the country's fundamental policy, national development strategy, economic and social development requirements and the latest trends of energy development at home and abroad.
 
Article 22 Preparation, Evaluation and Modification of Energy Strategy
The State Council shall be responsible for the preparation and promulgation of the national energy strategy.
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