Order of the President of the People’s Republic of China

No.77

The Law of the People’s Republic of China on Energy Conservation, amended and adopted at the 30th Meeting of the Standing Committee of the Tenth National People’s Congress of the People’s Republic of China on October 28, 2007, is hereby promulgated and shall go into effect as of April 1, 2008.

Hu Jingtao

President of the People’s Republic of China

October 28, 2007

Law of the People’s Republic of China on Energy Conservation

(Adopted at the 28th Meeting of the Standing Committee of the Eighth National People’s Congress on November 1, 1997, and amended at the 30th Meeting of the Standing Committee of the Tenth National People’s Congress on October 28, 2007)

Contents

Chapter I General Provisions

Chapter II Administration of Energy Conservation

Chapter III Rational and Economical Use of Energy

Section 1 General Stipulations

Section 2 Energy Conservation in Industrial Production

Section 3 Energy Conservation in Construction

Section 4 Energy Conservation in Transportation

Section 5 Energy Conservation by Public Institutions

Section 6 Energy Conservation in Key Energy-Using Units

Chapter IV Technological Advances in Energy Conservation

Chapter V Incentive Measures

Chapter VI Legal Liabilities

Chapter VII Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is enacted in order to promote energy conservation by all sectors of the society, increase energy efficiency, protect and improve the environment and promote comprehensive balanced and sustainable economic and social development.

Article 2 For the purposes of this Law, the resources of energy include coal, crude oil, natural gas, biomass energy, electric power, heating power, and other resources from which useful energy can be derived directly or through processing or conversion.

Article 3 For the purposes of this Law, energy conservation means, through tightened control over the use of energy and by adopting measures which are technologically feasible, economically rational and acceptable by the environment and community, reduction of the volume of energy consumed, the loss of energy and the discharge of pollutants and prevention of waste of energy, at each stage from production through to consumption of energy, in order to use energy efficiently and rationally.

Article 4 Conservation of resources is a fundamental State policy. The State implements an energy development strategy under which energy is conserved and exploited simultaneously while the first place is given to conservation.

Article 5 The State Council and the local people’s governments at or above the county level shall incorporate energy conservation in their plans for national economic and social development and their annual plans, and organize the drawing up and implementation of long- and medium-term special programs for energy conservation and annual plans for the same.

The State Council and the local people’s governments at or above the county level shall respectively report their work concerning energy conservation to the National People’s Congress or its Standing Committee, and to the local people’s congresses at the corresponding level or their standing committees.

Article 6 The State applies a system of responsibility for achieving the goals set for energy conservation and a system for assessing energy conservation, and shall include in the assessment of the local people’s governments and the leading persons their achievements in energy conservation.

The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall report to the State Council on the performance of their responsibilities in respect of the goals for energy conservation.

Article 7 The State applies such industrial policies as facilitate energy conservation and environment protection, to restrict the development of the industries which consume excessive quantities of energy or discharges excessive quantities of pollutants and to promote the development of energy-conserving and environment-friendly industries.

The State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall enhance work for energy conservation, rationally readjust the industrial structure, enterprise structure, product mix and the pattern of energy consumption, urge the enterprises to reduce their energy consumption per unit output value and per unit product, eliminate outdated production facilities, improve the exploitation, processing, conversion, transmission, storage and supply of energy, and increase energy efficiency.

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

Article 8 The State encourages and supports research of and development of the sciences and technologies for energy conservation and their demonstration and popularization, and promotes innovation and advances in technologies for energy conservation.

The State shall disseminate knowledge about energy conservation and educate people in this respect, include such knowledge in the system of national education and training, spread the scientific knowledge about energy conservation and enhance the awareness of the importance of energy conservation among all the people, and advocate an economical pattern of consumption.

Article 9 All units and individuals shall, in accordance with law, fulfill their obligation to conserve energy and have the right to report against any waste of energy.

The media shall propagate the laws, regulations and policies on energy conservation and bring into play the role of public opinion for supervision.

Article 10 The department in charge of energy conservation under the State Council shall be responsible for supervision and administration in respect of energy conservation nationwide. The relevant departments under the State Council shall, within the limits of their respective duties, be responsible for supervising and administering the work in energy conservation, and shall be subject to direction by the department in charge of energy conservation under the State Council.

The departments in charge of energy conservation under the local people’s governments at or above the county level shall be responsible for supervising and administering the work in energy conservation within their respective administrative areas. The relevant departments under the local people’s governments at or above the county level shall, within the limits of their respective duties, be responsible for supervising and administering the work in energy conservation, and shall be subject to direction by the departments in charge of energy conservation at the same level.

Chapter II

Administration of Energy Conservation

Article 11 The State Council and the local people’s governments at or above the county level shall enhance leadership in energy conservation, by making plans for the work in energy conservation, and coordinating, supervising, inspecting and promoting such work.

Article 12 The departments in charge of energy conservation and the relevant departments under the people’s governments at or above the county level shall, within the limits of their respective duties, enhance supervision and inspection with respect to the enforcement of the laws and regulations governing energy conservation and the application of the standards for energy conservation, and, in accordance with law, investigate and deal with violations of law in the use of energy.

When performing the duty of administration and supervision in respect of energy conservation, no one shall charge fees to any unit or individual under administration and supervision.

Article 13 The administrative department for standardization under the State Council and the relevant departments under the same shall, according to law, organize efforts to formulate, and modify in a timely manner, State and industrial standards for energy conservation, to set up a sound system of standards for energy conservation.

The administrative department for standardization under the State Council shall, in conjunction with the department in charge of energy conservation and the relevant departments under the same, formulate mandatory energy efficiency standards for energy-using products and equipment, and energy consumption norms per unit product for the products for the manufacture of which excessive quantities of energy are consumed.

The State encourages enterprises to establish their own energy conservation standards that are more rigorous than the State or industrial standards.

The local energy conservation standards formulated by provinces, autonomous regions or municipalities directly under the Central Government, which are more rigorous than the mandatory State or industrial standards shall be submitted to the State Council for approval by the people’s government thereof, unless otherwise provided for by this Law.

Article 14 The State and industrial standards for energy conservation in construction shall be formulated by the department in charge of construction under the State Council and shall be published according to the statutory procedures.

The department in charge of construction under the people’s government of a province, autonomous region or municipality directly under the Central Government may, in light of the actual local conditions, formulate local standards for energy conservation in construction which are more rigorous than the State or industrial standards, and shall present such standards to the departments in charge of standardization and construction under the State Council for the record.

Article 15 The State applies an energy conservation assessment and examination system to fixed-asset investment projects. If a project fails to meet the mandatory energy conservation standards, the authority responsible for examination and approval of projects as prescribed by law shall not give approval for its construction, and the developer shall not start construction; where construction of such a project has been completed, it shall not be put into production or to use. The specific measures in this regard shall be formulated by the department in charge of energy conservation under the State Council in conjunction with the relevant departments under the same.

Article 16 The State applies an elimination system to the outdated products, equipment and production techniques which consume excessive quantities of energy. The department in charge of energy conservation under the State Council shall, in conjunction with the relevant departments under the same, compile and publish the catalogue of the energy-using products, equipment and production techniques to be eliminated, and the measures for implementation.

Manufacturers of products that consume excessive quantities of energy in the process shall conform to the norms set for per unit product. The manufacturer that uses energy in excess of the norm set for per unit product shall be ordered to rectify within a time limit by the department in charge of energy conservation within the limits of its power as prescribed by the State Council.

Special equipment, which consumes excessive quantities of energy, shall be subject to examination and control for energy conservation as required by the State Council.

Article 17 Manufacturing, importing or distributing of the energy-using products or equipment which the State has eliminated by official order or which fail to conform to the mandatory energy efficiency standards is prohibited; and using of the energy-using equipment or production techniques which the State has eliminated by official order is prohibited.

Article 18 The State applies an energy efficiency labeling system to the energy-using products such as household electronic appliances, which are widely used and which consume large quantities of energy. The catalogue of products to which the energy efficiency labeling system is applied and the measures for implementation shall be formulated and published by the department in charge of energy conservation under the State Council in conjunction with the regulatory authority for quality control under the same.

Article 19 Manufacturers and importers shall attach energy efficiency labels to energy-using products which are included in the catalogue of products to which the national energy efficiency labeling system is applied, with direction given on the packages or in technical manuals and shall, according to the relevant regulations, file the matter for the record with the institution authorized by both the regulatory authority for quality control under the State Council and the department in charge of energy conservation under the same.

Manufacturers and importers shall be accountable for the accuracy of the energy efficiency labels attached and of the related information. Marketing of the products to which energy efficiency labels are not attached as required is prohibited.

Forgery of energy efficiency labels, using the labels of other products, or using energy efficiency labels for deceptive advertising is prohibited.

Article 20 Manufacturers and sellers of energy-using products may, under the principle of voluntariness and in accordance with the State regulations governing certification of energy-saving products, apply for such certification with the institutions which are recognized by the administrative department for approval and certification under the State Council as ones for certification of energy-saving products. They shall, after their products are considered qualified, be issued certificates for the said products and may have labels bearing such certification attached to the products or to the packages thereof.

Use of forged certification labels, or use of certification labels of other products is prohibited.

Article 21 The statistics departments of the people’s governments at or above the county level shall, in conjunction with the relevant departments at the same level, establish a sound energy statistics system, improve the index system for energy statistics, and improve and standardize the method of energy statistics collection, in order to ensure the authenticity and completeness of the energy statistical data collected.

The statistics department under the State Council shall, in conjunction with the department in charge of energy conservation under the same, regularly make known to the public such information as energy consumption and energy conservation of the provinces, autonomous regions and municipalities directly under the Central Government and the major energy-consuming industries. Article 22 The State encourages the development of energy-saving services and supports them in providing such energy-saving services as consultation, designing, assessment, monitoring, auditing, and certification.

The State supports the energy-saving services in their efforts to disseminate knowledge about energy conservation, conduct training in energy-saving technologies, and provide information in energy-saving, give energy saving demonstration and offer other energy-saving services for the benefit of the public.

Article 23 The State encourages trade associations to play a part in their respective trades in making energy conservation planning, formulating and implementing the standards for energy conservation, promoting the wide use of energy-saving technologies, collecting statistics of energy consumption, disseminating knowledge about and providing training in energy conservation, and giving consultation in this respect.

Chapter III

Rational and Economical Use of Energy

Section 1

General Stipulations

Article 24 Energy-using units shall, in accordance with the principle of rational use of energy, improve the administration of energy conservation, and formulate and implement plans and technical measures for energy conservation, in order to reduce energy consumption.

Article 25 Energy-using units shall establish a responsibility system for achieving energy conservation goals and reward the collectives and individuals that achieve successes in energy conservation.

Article 26 Energy-using units shall, on a regular basis, carry out education in energy saving and train their employees in energy saving at their posts.

Article 27 Energy-using units shall improve their energy measurement and, in accordance with the relevant regulations, equip themselves with and use up-to-standard energy measuring instruments that are verified as such according to law.

Energy-using units shall establish a system for energy consumption statistics and for analysis of energy utilization, in order to keep classified measurement and statistics of the different types of energy consumed and ensure the authenticity and completeness of such statistical data.

Article 28 Energy production or distribution units shall not provide energy to their own employees gratis. No units may charge a fixed lump sum on the energy consumed per month.

Section 2

Energy Conservation in Industrial Production

Article 29 The State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall promote the optimum exploitation and use as well as rational distribution of energy resources, push forward the readjustment of the industrial structure to help save energy, and optimize the pattern of energy consumption and enterprise layout.

Article 30 The department in charge of energy conservation under the State Council shall, in conjunction with the relevant departments under the same, formulate policies on energy conservation technologies for the major energy-consuming industries such as electric power, iron and steel, nonferrous metals, building materials, petroleum processing, chemical industries and coal, in order to push forward technical innovation for energy conservation in the enterprises.

Article 31 The State encourages industrial enterprises to use such equipment as motor drives, boilers, furnaces, blowers and pumps that are highly efficient and energy-saving, employ combined heat and power generation, make use of residual heat and pressure, use clean coal, and adopt advanced technologies in monitoring and controlling the use of energy.

Article 32 Power grid enterprises shall, according to the regulations formulated by the relevant departments under the State Council on the control of energy-saving power generation, merge the heat and power co-generating units, which operate in a clean and efficient way and conforms to relevant regulations, the generating units, which make use of residual heat and pressure, and other generating units, which conform to the regulations governing multipurpose utilization of resources with power grids for synchronized operation, and the rates of network electricity shall be paid in accordance with the relevant regulations of the State.

Article 33 Building of new coal-fired or gasoline-fired generating units or new coal-fired thermal power generating units is prohibited.

Section 3

Energy Conservation in Construction

Article 34 The department in charge of construction under the State Council shall be responsible for administration of and supervision over energy conservation in construction nationwide.

The department in charge of construction under the local people’s governments at or above the county level shall be responsible for administration of and supervision over energy conservation in construction within their own administrative areas.

The departments in charge of construction under the local people’s governments at or above the county level shall, in conjunction with the departments in charge of energy conservation at the same level, draw up programs for energy conservation in construction within their own administrative areas, which shall include plans for renovation of the energy-saving facilities of the existing building.

Article 35 The units for developing, designing, constructing and supervising construction projects shall maintain the standards for energy conservation in construction.

With respect to a construction project that does not conform to the standards for energy conservation, the department in charge of construction shall not give approval for their construction; if construction of such project has started, the said department shall order that the construction be discontinued and rectification be made within a time limit; and if construction of such project has been completed, it shall not be marketed or put to use.

The department in charge of construction shall enhance supervision and inspection with respect to the application of the standards for energy conservation in construction to the construction projects that are under development.

Article 36 When selling houses, real estate developers shall show clearly to the buyers, among other things, the energy conservation measures for the houses to be sold and the period of guarantee for the thermal insulation facilities, have such information clearly indicated in the real estate transaction contracts, the letters of guarantee for quality and the users’ manuals, and be responsible for the authenticity and accuracy of such information.

Article 37 The system of indoor temperature control shall be applied to air-conditioned public buildings. The specific measures in this regard shall be formulated by the department in charge of construction under the State Council.

Article 38 With respect to central heated buildings, the State shall adopt measures to introduce, step by step, the system of measuring heat supply based on individual household and charging fees based on the specific volume consumed by each household. In the construction of new buildings or in the renovation of energy conservation facilities of the existing buildings, devices for heat consumption measurement, indoor temperature control and heat supply control shall be installed. The specific measures in this regard shall be formulated by the department in charge of construction under the State Council in conjunction with the relevant departments under the same.

Article 39 The relevant departments of the local people’s governments at or above the county level shall improve administration in the economical use of electricity in the cities and strictly control energy consumption by public utilities and large buildings for decorative and scenic illumination. Article 40 The State encourages the use of energy-saving equipment and building materials, such as new wall materials, and the installation and use of the systems for utilizing solar energy and other renewable resources of energy in construction of new buildings and in renovation of the energy-saving facilities in existing buildings.

Section 4

Energy Conservation in Transportation

Article 41 The relevant departments in charge of transportation under the State Council shall, in compliance with their respective duties, be responsible for administration of and supervision over energy conservation in the areas related to transportation nationwide.

The relevant departments in charge of transportation under the State Council shall, in conjunction with the department in charge of energy conservation under the same, respectively draw up programs for energy conservation in the relevant areas.

Article 42 The State Council and the relevant departments under it shall guide and promote the coordinated development of and effective connection among the various modes of transportation and optimize the structure of transportation, in order to establish a comprehensive energy-saving system of transportation.

Article 43 The local people’s governments at or above the county level shall give first priority to the development of public transportation, increase input for such transportation, keep improving the sound public transportation service system and encourage people to use the means of public transportation; and encourage people to use non-motor vehicles.

Article 44 The relevant departments in charge of transportation under the State Council shall improve organization and administration of transportation and give guidance to the enterprises engaged in road, water or air transportation in their efforts to improve organized and intensive transportation, in order to increase energy efficiency.

Article 45 The State encourages the development, manufacture and use of energy-saving and environment-friendly automobiles, motor cycles, locomotives, vessels and other means of transportation and applies a system of scraping and replacing the old or outdated means of transportation.

The State encourages the development and wide use of clean fuels and oil substitutes for the means of transportation. Article 46 The relevant departments under the State Council shall establish norms for fuel consumed by vehicles and vessels which are used for transportation business; where such norms are not fulfilled, the vehicles or vessels in question shall not be used for transportation business.

The relevant department in charge of transportation under the State Council shall exercise stricter administration of and supervision over the monitoring of vehicles and vessels used for transportation business with respect to their fuel consumption.

Section 5

Energy Conservation by Public Institutions

Article 47 Public institutions shall practice strict economy and eliminate waste, and take the lead in the use of energy-saving products and equipment, in order to increase energy efficiency.

For the purposes of this Law, public institutions include the government departments, institutions and public organizations that completely or partly rely on government funding.

Article 48 The offices administering the affairs of the departments of the State Council and of the local people’s governments at or above the county level shall, in conjunction with the relevant departments at the corresponding levels, formulate programs for energy conservation by the public institutions under the same government and be responsible for their implementation. The programs for energy conservation by public institutions shall include the plans for renovation of the energy-saving facilities of the existing buildings of the public institutions.

Article 49 Public institutions shall design annual goals for energy conservation and draw up plans for their achievement, improve the measurement of energy consumed and the monitoring and control thereof, and submit reports on energy consumption in the preceding year to the offices administering the affairs of the developments of the corresponding people’s governments.

The offices administering the affairs of the departments of the State Council and of the local people’s governments at or above the county level shall, in conjunction with the relevant departments at the corresponding levels and within the limits of their administrative power, establish the quotas of energy consumption for the public institutions under the same government, and the finance departments shall, on the basis of the said quotas, formulate the standard for the expenditure on energy consumption.

Article 50 Public institutions shall tighten control over their energy-using system to ensure that it operates in conformity with the relevant standards of the State.

Public institutions shall, according to regulations, have their energy consumption audited and, on the basis of the results of auditing, adopt measures to increase energy efficiency.

Article 51 When purchasing energy-using products and equipment, public institutions shall give first priority to the products and equipment listed in the catalogue of energy-saving products and equipment for government procurement. Procurement of energy-using products or equipment, which the State has eliminated by official order, is prohibited.

The catalogue of energy-saving products and equipment for government procurement shall be compiled and published by the regulatory authorities for government procurement of the people’s governments at or above the provincial level in conjunction with the relevant departments at the same level.

Section 6

Energy Conservation in Key Energy-Using Units

Article 52 The State improves administration of the key energy-using units with respect to energy conservation.

In one of the following cases, an energy-using unit is a key energy-using unit, if:

(1) its annual overall consumption of energy totals 10,000 tons of standard coal and more; and

(2) its annual overall consumption of energy totaling 5,000 tons and more but less than 10,000 tons of standard coal, as determined by the relevant department under the State Council or the departments in charge of energy conservation under the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government.

The administrative measures for energy conservation in the key energy-using units shall be formulated by the department in charge of energy conservation under the State Council in conjunction with the relevant departments under the same.

Article 53 A key energy-using unit shall annually submit a report on the energy utilized in the preceding year to the department in charge of energy conservation. The report shall include information on energy consumption, energy efficiency, achievement of the goal for energy conservation, analysis of the results of energy conservation, measures taken for energy conservation, etc.

Article 54 The department in charge of energy conservation shall review the report on energy utilization submitted by key energy-using units. With respect to a key energy-using unit that lacks a sound control system for energy conservation or fails to put the measures for energy conservation into practice or its energy efficiency is low, the said department shall conduct on-the-spot investigation, arrange a test of the energy-using equipment with respect to energy efficiency, order the said unit to be audited as to its energy consumption and, in writing, require it to make rectification within a time limit.

Article 55 A key energy-using unit shall establish positions for energy control, appoint to such positions persons to be responsible for energy control from among the ones who have the expertise and practical experience in energy conservation and who have the technical title at or above the intermediary level, and submit the appointments to the department in charge of energy conservation and the relevant departments for the record.

The persons responsible for energy control shall be responsible for analyzing and assessing energy utilization in their own unit, preparing reports thereon, and proposing measures for improvement of energy conservation and ensuring their implementation.

The leading persons for energy control shall receive trainings in energy conservation.

Chapter IV

Technological Advances in Energy Conservation

Article 56 The department in charge of energy conservation under the State Council shall, in conjunction with the department in charge of science and technology, publish the outlines for the policies on technologies for energy conservation, to provide guidance in the research, development and wide application of energy-saving technologies.

Article 57 The people’s governments at or above the county level shall make research and development of energy-saving technologies the key areas for their investment in science and technology. They shall support the scientific research institutions and enterprises in research in the application of energy-saving technologies, formulate the norms for energy conservation, develop general and key energy-saving technologies, and promote technological innovations in energy conservation and the transformation of such technological achievements.

Article 58 The department in charge of energy conservation under the State Council shall, in conjunction with the relevant departments under the same, compile and publish a catalogue of energy-saving technologies and products for popularization, guide the energy consumers in adopting advanced energy-saving technologies and products.

The department in charge of energy conservation under the State Council shall, along with the relevant departments under the same, be responsible for organizing scientific research in the major energy conservation projects and demonstration for energy conservation demonstration projects and construction of key energy conservation projects.

Article 59 The people’s governments at or above the county level shall, under the principles of doing what is appropriate in light of local conditions, complementing multiple forms of energy, making synthetic use of energy and laying stress on results, enhance energy conservation in agriculture and in the rural areas, and increase their input of funds to spread the application of energy-saving technologies and the use of energy-saving products in agriculture and in the rural areas.

The relevant departments in charge of agriculture, science and technology, etc. shall support and spread the application of energy-saving technologies and the use of energy-saving products in agricultural production and in agricultural product processing, storage, transportation, etc., and encourage the replacement and elimination of agricultural machines and fishing vessels that consume excessive quantities of energy.

The State encourages and supports the rural areas in their great effort to develop methane, spread the application of the technologies for utilization of such renewable sources of energy as biomass energy, solar energy and wind-power and, under the principle of scientific planning and exploitation in an orderly manner, to develop small-scale hydro-power generation, popularize energy-saving rural housing and cooking range, and it encourages the growth of bioenergy crops by making use of non-arable land and the extensive development of fuel forest and other forests used for energy.

Chapter V

Incentive Measures

Article 60 The Central Government and the local governments at the provincial level shall allocate special funds for energy conservation to finance research and development of energy conservation technologies, demonstration and popularization of energy conservation technologies and products, construction of key energy conservation projects, dissemination of and training in the knowledge of energy conservation and provision of information and commendation and rewarding of achievements in this respect.

Article 61 The State applies supportive policies such as preferable tax policies to support the manufacture and use of the energy conservation technologies and products included in the catalogue for popularization, as specified in Article 58 of this Law, that need such support.

Through government subsidies, the State supports the popularization and use of such energy-saving products as energy-saving lighting appliances. Article 62 The State shall adopt the tax policies that are advantageous to conservation of energy resources and improve the sound system for paid use of energy mineral resources, to promote the conservation of energy resources and their exploitation and utilization at a higher level.

Article 63 The State shall use taxation and other policies to encourage the import of advanced energy conservation technologies and equipment and to restrict the export of the products for the manufacture of which excessive quantities of energy are consumed and excessive quantities of pollutants are discharged.

Article 64 The regulatory authority for government procurement shall, in conjunction with the relevant departments, compile the catalogue of energy-saving products and equipment for government procurement and, in doing so, shall give first priority to the products and equipment to which energy conservation certificates are granted.

Article 65 The State shall give guidance to financial institutions so that they shall give more support to energy conservation projects in the form of loans or credits and provide loan on favorable terms to such qualified projects as research and development in energy conservation technologies, manufacture of energy-saving products and innovation of energy conservation technologies.

The State shall urge the relevant sectors of the society to increase their input of funds in energy conservation for the purpose of speeding up the innovation of energy conservation technologies and give them guidance in this respect.

Article 66 The State shall adopt the pricing policies, which are advantageous to energy conservation as a means of guide to energy consumers in their conservation of energy.

The State shall, through financial, tax and pricing policies, support and popularize the measures for energy conservation, such as lateral control over the demand for power, contracted control of energy and voluntary agreement on energy conservation.

The State applies a electricity pricing system consisting of peak load rates, seasonal rates and interruptible load rates, to encourage electricity consumers to adjust their power load in a rational manner. With respect to the enterprises in iron and steel, nonferrous metal, construction materials and chemical industries and other major energy consuming industries, the policy of differential rates shall be implemented among different enterprises, according to the different categories they belong to, namely, the ones that are to be eliminated or the ones whose development is restricted, permitted or encouraged.

Article 67 The people’s governments at all levels shall commend and reward units or individuals that achieve outstanding successes in energy conservation control or in research or wide application of energy conservation technologies, or that report against serious energy waste.

Chapter VI

Legal Liabilities

Article 68 Where an authority responsible for examination and approval or verification of fixed-asset investment projects, in violation of the provisions of this Law, gives approval or confirmation to the construction projects which fail to conform to the mandatory standards for energy conservation, the leading person directly in charge and the other persons who are directly responsible shall be given administrative sanctions in accordance with law.

Where a developer of a fixed-asset investment project starts to construct the project that fails to conform to the mandatory standards for energy conservation or puts it into production or to use, the department in charge of energy conservation shall order the developer to discontinue construction of the project or cease production or use and to reconstruct the project within a time limit; if the project is designed for production and reconstruction is impossible or the developer fails to reconstruct it within the time limit, the department in charge of energy conservation shall report the matter to the people’s government to which it belongs, which shall order the close-down of the project within the limits of its power as prescribed by the State Council.

Article 69 Where an entity manufactures, imports or sells energy-using products or equipment which the State has eliminated by official order, or uses forged certification labels for energy-saving products or labels for other products, it shall be punished in accordance with the relevant provisions of the Law of the People’s Republic of China on Product Quality.

Article 70 Where an entity manufactures, imports or sells energy-using products or equipment which fail to conform to the mandatory energy efficiency standards, the department for supervision over product quality shall order it to discontinue the manufacture, import or sale of such products or equipment, and confiscate the illegally manufactured, imported or marketed products or equipment and the unlawful gains derived therefrom, and shall, in addition, impose a fine of not less than one time but not more than five times the unlawful gains; and if the circumstances are serious, the administrative department for industry and commerce shall revoke its business license.

Article 71 Where an entity uses the energy-using equipment or production techniques which the State has eliminated by official order, the department in charge of energy conservation shall order it to stop using such equipment or techniques and shall confiscate the said equipment; and if the circumstances are serious, the said department may submit a proposal to the people’s government to which it belongs that the said government, within the limits of its power as prescribed by the State Council, order the entity to suspend operation for rectification or close down.

Article 72 Where a manufacturer uses energy in excess of the norm set for energy consumption per unit product to a serious extent, and fails to make rectification within the prescribed time limit or fails to meet the requirements after rectification, the department in charge of energy conservation may submit a proposal to the people’s government to which it belongs that the said government, within the limits of its power as prescribed by the State Council, order the manufacturer to suspend production for rectification or close down.

Article 73 Where an entity, in violation of the provisions of this Law, fails to attach energy efficiency labels to its products as required, the department for supervision over product quality shall order it to rectify and impose on it a fine of not less than RMB 30,000 yuan but not more than 50,000 yuan.

Where an entity, in violation of the provisions of this Law, fails to have its energy efficiency labels put on file, or uses the energy efficiency labels that do not conform to the relevant regulations, the department for supervision over product quality shall order it to rectify within a time limit; if it fails to rectify at the expiration of the time limit, it shall be fined not less than 10,000 yuan but not more than 30,000 yuan.

Where an entity forges energy efficiency labels, or uses labels for other products, or uses energy efficiency labels for deceptive advertising, the department for supervision over product quality shall order it to rectify and impose on it a fine of not less than 50,000 yuan but not more than 100,000 yuan; and if the circumstances are serious, the administrative department for industry and commerce shall revoke its business license.

Article 74 Where an energy-using unit fails to equip itself with or use the prescribed energy measuring instruments, the department for supervision over product quality shall order it to rectify within a time limit; if it fails to do so at the expiration of the time limit, it shall be fined not less than 10,000 yuan but not more than 50,000 yuan.

Article 75 Where an entity conceals the facts about, fabricates or tampers with the energy statistical data or provides false energy statistical data, it shall be punished in accordance with the provisions in the Statistics Law of the People’s Republic of China.

Article 76 Where an agency that offers such services as consultancy, design, assessment, testing, auditing and certification in respect of energy conservation provides false information, the department in charge of energy conservation shall order it to rectify, and confiscate its unlawful gains and shall, in addition, impose on it a fine of not less than 50,000 yuan but not more than 100,000 yuan.

Article 77 Where an unit, in violation of the provisions of this Law, provides energy gratis to its employees or charges a fixed lump sum on the energy consumed per month, it shall be ordered by the department in charge of energy conservation to rectify within a time limit; if it fails to do so at the expiration of the time limit, it shall be fined not less than 50,000 yuan but not more than 200,000 yuan.

Article 78 Where a power grid enterprise fails to merge the heat and power co-generating units, which conform to relevant regulations, and the generating units which make use of residual heat and pressure, with power grids for synchronized operation, as provided for in this Law, or fails to pay the relevant rates as determined by the State for network electricity, the power regulatory authority of the State shall order it to rectify; if financial losses are caused to power generating enterprises, it shall bear the liability for compensation in accordance with law.

Article 79 Where a developer violates the standards for energy conservation in construction, the department in charge of construction shall order it to rectify and impose on it a fine of not less than 200,000 yuan but not more than 500,000 yuan.

Where a unit responsible for project design, construction operation, operational supervision violates the standards for energy conservation in construction, the department in charge of construction shall order it to rectify and impose on it a fine of not less than 100,000 yuan but not more than 500,000 yuan. If the circumstances are serious, it shall be degraded in qualification by the department issuing qualification certificates or its qualification certificate shall be revoked by the said department; and if losses are caused, it shall bear the liability for compensation in accordance with law.

Article 80 When selling houses, a real estate developer, in violation of the provisions of this Law, fails to show clearly to a buyer, among other things, the energy conservation measures for the house to be sold and the period of guarantee for the thermal insulation facilities, the department in charge of construction shall order it to rectify; if it fails to do on the expiration of the time limit, it shall be fined not less than 30,000 yuan but not more than 50,000 yuan; and if it makes deceptive advertisement with respect to the information mentioned above, the department in charge of construction shall order it to rectify and impose on it a fine of not less than 50,000 yuan but not more than 200,000 yuan.

Article 81 When a public institution purchasing energy-using products or equipment fails to give first priority to the products and equipment listed in the catalogue of energy-saving products and equipment for government procurement, or purchases energy-using products or equipment which the State has eliminated by official order, it shall be given a warning by the regulatory authority for government procurement and may, in addition, be imposed a fine; and the leading person directly in charge and the other persons directly responsible shall be given administrative sanctions and be criticized in a circular.

Article 82 Where a key energy-using unit fails to submit the report on energy utilization according to the provisions of this Law, or the report submitted is not true to fact, the department in charge of energy conservation shall order it to rectify within a time limit; if it refuses to do so on the expiration of the time limit, it shall be fined not less than 10,000 yuan but not more than 50,000 yuan.

Article 83 Where a key energy-using unit, without justifiable reasons, refuses to comply with the requirement for rectification, as provided for in Article 54 of this Law, or fails to fulfill the requirement after rectification, it shall be fined not less than 100,000 yuan but not more than 300,000 yuan by the department in charge of energy conservation.

Article 84 Where a key energy-using unit, in violation of the provisions of this Law, fails to establish positions for energy management or appoint to such positions persons to be responsible for energy control, or fails to submit the appointments to the department in charge of energy conservation and the relevant departments for the record, it shall be ordered by the department in charge of energy conservation to rectify; if it refuses to do so, it shall be fined not less than 10,000 yuan but not more than 30,000 yuan.

Article 85 Where an entity violates the provisions of this Law, which constitutes a crime, it shall be investigated for criminal responsibility.

Article 86 Where a State functionary abuses his power, neglects his duty or engages in malpractices for personal gain in administration of energy conservation, which constitutes a crime, he shall be investigated for criminal responsibility in accordance with law; if the case is not serious enough to constitute a crime, he shall be given an administrative sanction in accordance with law.

Chapter VII

Supplementary Provisions

Article 86 This Law shall go into effect as of April 1, 2008.